IR35 hack?

[ApeShape]

In my little contracting niche, I'm noticing some interesting attempts to adjust to the IR35 changes. Shifting the relationship between the consultant and the end user is an interesting one. An example of this would be the recruiter using another company that it owns as the 'end user' (a pseudo consultancy) and this end user then dropping the consultant into the actual end user. Additionally, requiring the consultant to complete online assessments/questionaires for status determination. If that checks back as the consultant being outside, then an insurance policy is issued.

Is this all BS? I guess we'll only know when these measures are put to scrutiny.

[northernladuk]

As long as you are still doing work for the client then it doesn't matter how many people you put in the way. Client still has to do the SDS.

There are no hacks around at present, particularly ones that can be explained in one paragraph.

[ladymuck]

Sounds a bit shifty to me TBH

Does the client know how is being placed and would they be upset if that person was swapped out?

[eek]

In my little contracting niche, I'm noticing some interesting attempts to adjust to the IR35 changes. Shifting the relationship between the consultant and the end user is an interesting one. An example of this would be the recruiter using another company that it owns as the 'end user' (a pseudo consultancy) and this end user then dropping the consultant into the actual end user. Additionally, requiring the consultant to complete online assessments/questionaires for status determination. If that checks back as the consultant being outside, then an insurance policy is issued.

Is this all BS? I guess we'll only know when these measures are put to scrutiny.

Sounds like every agency in my market - becoming pseudo consultancies to increase their margin...

[Hobosapien]

Problem with any 'hack' is the potential for HMRC to catch-up with you years down the line for back taxes include late penalties and fines when they see through any 'disguised employee' tax evasion shenanigans used by agencies or end clients.

Will the insurance policy cover all that?

[LetterBox]

Problem with any 'hack' is the potential for HMRC to catch-up with you years down the line for back taxes include late penalties and fines when they see through any 'disguised employee' tax evasion shenanigans used by agencies or end clients.

Will the insurance policy cover all that?

My Nigerian uncle says yes, they will cover all of the above. HTH

[MonkeysUncle]

Sounds like every agency in my market - becoming pseudo consultancies to increase their margin...

+1 This

When the rules hit the PS in 2017 I know of a few that did this, suddenly they are not XX Agency but XX Group, under that sits XX Agency and XX Consultancy.

I imagine come April you will see this a lot more often.

[Andy Hallett]

What could possibly go wrong?

[eek]

What could possibly go wrong?

Knowing the agencies trying to do it now in my industry - everything...