IPSE Membership For New Contract

[Coolshot]

Hello,
Since April last year I've been working on a FTC but recently been offered a contract outside IR35 which I plan to take up. Now that the fee payer is responsible for the SDS and taxes if they get it wrong is it still worth being a member of the IPSE? I was a member for 10 years but didn't renew last year after closing my Ltd company.

[malvolio]

They cover more than IR35 anyway, but apart from that if the position is challenged how would toy defend it?

[northernladuk]

It also covers you for general tax problems not just IR35. Just because the client issues the SDS it doesn't mean you aren't going to get tax investigations. And if you are outside then there are no taxes for the fee payer to be responsible for. You still have legal responsibility for your LTD co's taxes.

As Mal pointed out there is jury service, business interruption and other elements.

Just got to read the blurb and see if it's for you. There is no right or wrong answer here and depending on your attitude to risk.

[Coolshot]

Under the new rules is it still my responsibility to defend a challenge/investigation by HMRC? If so then I'll take out a new membership.
I note they also cover jury service and a few other things so may be worth it anyway.

[northernladuk]

Under the new rules is it still my responsibility to defend a challenge/investigation by HMRC? If so then I'll take out a new membership.
I note they also cover jury service and a few other things so may be worth it anyway.

They say no but we don't really know for sure as it hasn't really happened yet. HMRC have said they will still investigate gigs before April for up to 6 years prior so the insurance will help retrospectively as well. Just have to work back from before your FTC and see what your possible exposure might be.

Obviously, as mentioned, there are general tax investigations that will continue as normal.

[silent bob]

Hello,
Since April last year I've been working on a FTC but recently been offered a contract outside IR35 which I plan to take up. Now that the fee payer is responsible for the SDS and taxes if they get it wrong is it still worth being a member of the IPSE? I was a member for 10 years but didn't renew last year after closing my Ltd company.

So you only closed your Ltd last year? Just checking that you're aware, if you're taking an outside contract, that you can't open a new Ltd just yet anyway??

[pr1]

So you only closed your Ltd last year? Just checking that you're aware, if you're taking an outside contract, that you can't open a new Ltd just yet anyway??

Only if they used MVL

[Coolshot]

Only if they used MVL

I didn't have much of a warchest so just took a final dividend.

[northernladuk]

Don't forget to get yourself an accountant and speak to them. If you've got income this year already you'll need to change your pay levels, or even not pay yourself at all for the rest of the year if you are over the tax threshold.

[Coolshot]

Only if they used MVL

Don't forget to get yourself an accountant and speak to them. If you've got income this year already you'll need to change your pay levels, or even not pay yourself at all for the rest of the year if you are over the tax threshold.

Yes I will do before I start. I don't plan to take any salary till next tax year and only minimum dividends to cover the mortgage payments.