Another IR35 Question

[googleface]

Hello,

I have been working for a client for 24 months now.

During the first 9 months I was operating through an umbrella company
on PAYE basis.

I then changed to an MSC on a Ltd Company basis, which this then changed following the legislation amendments in April of this year and I began operating through my own Ltd Company.

I am now been offered a futher 3 month extension.

How does this all fit in with IR35, any suggestions or advice?

Thanks

[Bluebird]

Your IR35 status depends upon the contract and your working practices, if you have so far been outside of IR35 then that should remian so.

However now you are over 24 months, you can no longer claim that this is a temporary place of work and you can't claim milage etc.

Have you ever had your contract reviewed ?

[MikeC1408]

Your IR35 status depends upon the contract and your working practices, if you have so far been outside of IR35 then that should remian so.

However now you are over 24 months, you can no longer claim that this is a temporary place of work and you can't claim milage etc.

Have you ever had your contract reviewed ?

I had been led to believe that once a contract goes over 2 years then you can be deemed a permie and are then caught by IR35.

Is this incorrect then? The only differences are what you can claim?

[googleface]

Ir35

Hello Bluebird,

Thanks for the reply.

I will look into my contract being reviewed and will certainly build more outside IR35 aspects into future contracts.

Thanks

[VectraMan]

I had been led to believe that once a contract goes over 2 years then you can be deemed a permie and are then caught by IR35.

Is this incorrect then? The only differences are what you can claim?

Who is it that's doing all the leading to believe? This seems to be a popular bit of misinformation.

[Qdos Contractor]

I had been led to believe that once a contract goes over 2 years then you can be deemed a permie and are then caught by IR35.

Is this incorrect then? The only differences are what you can claim?

Yep, that is totally incorrect and an all too common myth. The length of time at one client isn't anywhere near as important as people assume - if you have a commercially beneficial arrangement with a particular client nobody can expect you to terminate simply to satisfy HMRC.

The important factor to consider when you have reached 2 years is the 24 month rule, regarding expenses you can claim traveling to a client site.

[TheFaQQer]

I had been led to believe that once a contract goes over 2 years then you can be deemed a permie and are then caught by IR35.

Is this incorrect then? The only differences are what you can claim?

Completely wrong - one recent successful defence that the PCG helped was for someone who had been with one customer for 7 years.

Once you know that the contract is going to be more than 24 months, then you can't claim travel expenses. Note - as soon as you know that you will be there for more than 24 months you must stop; not once you go over that limit.

[MikeC1408]

Yep, that is totally incorrect and an all too common myth. The length of time at one client isn't anywhere near as important as people assume - if you have a commercially beneficial arrangement with a particular client nobody can expect you to terminate simply to satisfy HMRC.

The important factor to consider when you have reached 2 years is the 24 month rule, regarding expenses you can claim traveling to a client site.

Completely wrong - one recent successful defence that the PCG helped was for someone who had been with one customer for 7 years.

Once you know that the contract is going to be more than 24 months, then you can't claim travel expenses. Note - as soon as you know that you will be there for more than 24 months you must stop; not once you go over that limit.

Thanks for clearing that up guys, only at the 'going to be there 9 months stage' at the moment but it's good to know the facts.