Private settlement over IR35 claim

[maxima]

Some people like to point on stats about IR winning 2 cases out of 1000 court claims.

I'd like to ask if anyone has information - what is figure for settlements. I have feeling that IR doesnt take everyone into a court. I think they create some pressure on the targeted person and then offer him/her a settlement.

I think there are much more than just 1000 IT contractors who agreed to pay asking price for this 'service'

any ideas?

[rootsnall]

Some people like to point on stats about IR winning 2 cases out of 1000 court claims.

I'd like to ask if anyone has information - what is figure for settlements. I have feeling that IR doesnt take everyone into a court. I think they create some pressure on the targeted person and then offer him/her a settlement.

I think there are much more than just 1000 IT contractors who agreed to pay asking price for this 'service'

any ideas?

I don't think the IR do settlements like in other countries, its all or nothing. Get you insurance in place and let them do battle if it comes to it.

[tim123]

Some people like to point on stats about IR winning 2 cases out of 1000 court claims.

I'd like to ask if anyone has information - what is figure for settlements. I have feeling that IR doesnt take everyone into a court. I think they create some pressure on the targeted person and then offer him/her a settlement.

I think there are much more than just 1000 IT contractors who agreed to pay asking price for this 'service'

any ideas?

No-ones prepared to say. You have to be a member of the secret club to find out.

tim

[tim123]

I don't think the IR do settlements like in other countries, its all or nothing. Get you insurance in place and let them do battle if it comes to it.

ITYF he means settle, as in "pay up in full".

tim

[IR35 Avoider]

I don't think the IR do settlements like in other countries

Yes they do, in general. Don't know if this applies to IR35-caught contractors, as I would imagine you need a savvy accountant to negotiate on your behalf.

I was suspicious of the PCG success figures because I assumed that everyone who didn't have an ironclad case settled before a hearing, and that these "failures" wouldn't appear in the statistics, however when I enquired I was assured that the success rate included all disputes, not just ones that e.g. went to commissioners.

[tim123]

Yes they do, in general. Don't know if this applies to IR35-caught contractors, as I would imagine you need a savvy accountant to negotiate on your behalf.

I was suspicious of the PCG success figures because I assumed that everyone who didn't have an ironclad case settled before a hearing, and that these "failures" wouldn't appear in the statistics, however when I enquired I was assured that the success rate included all disputes, not just ones that e.g. went to commissioners.

I think that you are right to be suspicious. I am sure that the number of people "just paying up" must exceed the number of people who win an appeal by quite a long way.

I can understand why the PCG don't want to advertise these figures because it would show up their current figure, but it's not clear why HMG keep them secret as well.

tim

[VectraMan]

You could say that everybody in a PAYE umbrella has already settled. Which is quite a lot of people.

PCG stats are 1405:3,

[maxima]

I know at least one contractor (a local man by the way) who get offered to pay and not to go to a court. He paid 12 grand and left contracting. Now he is fat sitting on 40 grand in some big company writing VB6 code using C#.

So the answer - they dont do that - not valid..

And what was it about secret society ? There are many cases in the life when both sides in any kind of dispute want to settle quitely (means not taking things to court). One side expect fast payment without risk another side pays less court expenses and less stress or even less amount. We call it negotiation.. Etc... Why shouldnt IR do that ?

P.S. foreigner doesnt automatically mean daft.

[maxima]

You could say that everybody in a PAYE umbrella has already settled. Which is quite a lot of people.

sorry offtopic again - you know - I am new here. I was sure no sane people use PAYE services... Why would they do so ? Having proper permanent job has almost same benefits... Am I missing something?

[expat]

sorry offtopic again - you know - I am new here. I was sure no sane people use PAYE services... Why would they do so ? Having proper permanent job has almost same benefits... Am I missing something?

Salary 45-50k, or do the same work for 450/day. Even after it's chewed up by PAYE and self-provision of holidays etc, it's still more money. And less office bulltulip.