IR35 with different client

[Calithed0g]

Just wanted some opinions on this scenario.

I was a contractor direct to the end customer for a period of time in a project role. My role ended at the end of dec 2020.

End customer then changed their 3rd party supplier for BAU support at the start of 2021, and I was offered a contract position with the new 3rd party supplier as a BAU support engineer. My contract for this new role was from Jan 2021 to end of March 2021. I have been offered a contract extension for another 3 months which falls inside IR35, will this risk the previous position also being classed as inside IR35 by HMRC even though it’s a different customer, although the end client is till the same?

[northernladuk]

How can it? It was a different role. The old role on the project ended and the position evaporated. You are back in a totally different role so has nothing to do with the old one. How can HMRC link a compeletely different role with the one you are in and assume both are inside? Makes no sense. I understand the whole IR35 is confusing but when they are two different roles you've got to be able to work it out surely? It's pretty basic stuff.

I'm not sure how contracting as BAU support could be anything but inside so the only risk you are facing is being on the hook for the tax plus penalties from the current role you are doing that started Jan 2021.

[Calithed0g]

Northenladuk yes I feel the same, the thing that concerns me is that both contracts are through the same agency so if HMRC are purely looking at agency payments it will look like nothing has changed.

[jamesbrown]

If you weren't inside for the previous three months, then you'd be at risk on that portion of your current role, yes. However, regarding the previous role (the focus of your question, I believe) then, no. Assuming the working practices were completely different, then it's a completely different assessment. There are even IR35 cases involving a split treatment in the same role, so distinct working practices always means a distinct assessment. In any case, your earlier role was different from your current one and they will be assessed separately. Regarding the risk of investigation, it's really impossible to know (HMRC don't advertise their risk profiling) and there is a random element too, but there will be plenty of lower-hanging fruit post April 5 than your situation.

[northernladuk]

Northenladuk yes I feel the same, the thing that concerns me is that both contracts are through the same agency so if HMRC are purely looking at agency payments it will look like nothing has changed.

And that is because you don't understand it properly.