Best business Structure post April

[eek]

I have to say, this little bit of nuance had passed me by in the other discussions going on.

Unless you are on "paid when paid" terms or direct with the client, it's very likely that the payment terms you have with the agency (fee payer) are completely different to the terms the agency has with the client. This means you could be expected to start a job and spend maybe 3 months not knowing if you're in or out but still getting paid. How do you know what you'll be paid?

Imagine the reaction of me and JamesBrown when we heard what the actual rules were and not what everyone seems to have assumed them to be - when sat in a meeting we weren't supposed to be attending.

Especially when the conversation then moves on to an outside determination is appealed.

[ladymuck]

I bet IPSE are all over this

[eek]

I bet IPSE are all over this

IPSE were one of the people who asked for this change - as a determination prior to starting work cannot reflect working practises.

You know the phrase be careful what you wish for....

[ladymuck]

IPSE were one of the people who asked for this change - as a determination prior to starting work cannot reflect working practises.

You know the phrase be careful what you wish for....

[jamesbrown]

I still can't quite believe what I heard.... but I did hear it because eek heard it too.

[eek]

I still can't quite believe what I heard.... but I did hear it because eek heard it too.

More than that - I tried while in a state of complete shock to think of questions that would allow me to double check what we had heard was correct while still pretending to be a recruitment consultant. And the answers did match what I had thought I was imagining..

[Paralytic]

The deadline isn't the first payment by the fee payer, it's first payment by the party responsible for making the determination i.e. the end client which may be 120 days after you started the contract based on respective payment terms (monthly billing, with the end client on 90 day terms).

Thanks for the clarification - I hadn't appreciated how agency factoring would play into this.

Whilst I doubt this will impact many people in actuality (I suspect most clients will want to get a determination in early), it's ludicrous that contractors could be put in this position of doubt. Or do you think this leeway would also allow a client to change a previous outside to inside between engagement start date and first client payment to agency?

If so, when do you expect your dodgy tax avoidance scheme to launch?

[eek]

Thanks for the clarification - I hadn't appreciated how agency factoring would play into this.

Whilst I doubt this will impact many people in actuality (I suspect most clients will want to get a determination in early), it's ludicrous that contractors could be put in this position of doubt.

When do you expect your dodgy tax avoidance scheme to launch?

Oh quickly if it works - it only dawned on me overnight so I'm going through things at the moment

Sadly it won't be dodgy - it would be so much easier if I didn't have moral standards.

[cojak]

Love the idea of eek and JB sneaking into a Zoom conference call amongst recruiters.

[eek]

Thanks for the clarification - I hadn't appreciated how agency factoring would play into this.

Whilst I doubt this will impact many people in actuality (I suspect most clients will want to get a determination in early), it's ludicrous that contractors could be put in this position of doubt. Or do you think this leeway would also allow a client to change a previous outside to inside between engagement start date and first client payment to agency?

If so, when do you expect your dodgy tax avoidance scheme to launch?

The original timeframe for determination was so much easier as it did made things easy - the client made a decision and you picked the appropriate payment mechanism.

The new rules mean you (currently) need to second guess what the SDS decision will be and pick what you hope is the most appropriate mechanism - knowing that if you are wrong you've got a large tax bill to pay.

Edit - as I missed the hidden question. It's easily possible that an agency could sell you a contract as outside IR35 and then for them to be "surprised" by an inside determination arriving 90 days later.