IR35 insurance for outside role starting before April 6th.

**eek** · 18 March 2021, 11:24

Originally posted by Pikabu View Post

Hi all,

I'm a newbie to this site and am taking on a new contract for the first time, and wanted to check something with you all as I wasn't clear on the IR35 changes.
I know from April 6th the end-client is responsible, but because I start my first role before then, does that mean I'm responsible before then?

I've done a Hays Status Review (which seems to be a partnership with QDOS), which came back with an 'outside' determination, which went to the client (A large financial institution) for agreement.
Regardless of them agreeing, am I right in thinking I'm responsible for the determination before April 6th?

I was planning on buy QDOS tax/IR35 insurance for £199.

Thanks,
Pikabu

It's 3 weeks why are you bothering?

Wait for the end client to confirm it's inside or outside and then use the appropriate mechanism (your limited company or an umbrella as appropriate)

**northernladuk** · 18 March 2021, 11:34

Originally posted by Pikabu View Post

Hi all,

I'm a newbie to this site and am taking on a new contract for the first time, and wanted to check something with you all as I wasn't clear on the IR35 changes.
I know from April 6th the end-client is responsible, but because I start my first role before then, does that mean I'm responsible before then?

I've done a Hays Status Review (which seems to be a partnership with QDOS), which came back with an 'outside' determination, which went to the client (A large financial institution) for agreement.
Regardless of them agreeing, am I right in thinking I'm responsible for the determination before April 6th?

I don't wish to be rude but if you don't know if you are responsible before April how can you have the confidence you've filled in the status review properly?

I hate this process with the contractor doing their own review and then passing to the client. It can only end badly when clients start refusing RoS or start applying D&C. If HMRC wants to investigate anyone then self cert SDS's has to be the first place to start.

**Pikabu** · 18 March 2021, 15:07

Originally posted by eek View Post

It's 3 weeks why are you bothering?

Wait for the end client to confirm it's inside or outside and then use the appropriate mechanism (your limited company or an umbrella as appropriate)

The client confirmed it's outside and I had already set up my own company, but from reading the HMRC pages my understanding was that it's still my responsibility to decide the status before April 6th.
Ultimately, what I'm worried about is HMRC coming after me because they disagree with the status determination because of the services I provide before 6th April. I don't want to waste money buying legal/IR35 insurance if it's completely not necessary, but don't mind buying it if there's a small risk for peace of mind.

Thanks for the replies northernladuk and eek.

**Paralytic** · 18 March 2021, 15:40

For 3 weeks, I'd not bother with insurance, but (assuming i truly felt I was outside) set aside the Tax/NI that would be due if HMRC were ever to come after me. If not already done, you could also wait until the client issue an SDS (but which could be nearly 4 months away) and if they change it to Inside, decide what to do from there.

After a few years, if HMRC haven't come calling, buy a new Lambo (Matchbox) with the money set aside.

**Pikabu** · 18 March 2021, 17:40

Thanks Paralytic. I misunderstood what HMRC are likely to do. I know they aren't likely to go after someone for 3 weeks worth of tax.
I had thought it worked differently, but I'm glad I was wrong.

IR35 insurance for outside role starting before April 6th.