HMRC lose ir35 case

[ASB]

The thing that gets me, is that it is in the interest of the end client to make sure the contract is blatantly outside IR35.

If the contract is IR35 caught you could theoretically argue that since you have been classified as IR35 caught you are by default entitled to employment right with the company in question and then demand holidays, sick pay and a job as a result.

Most companies hire contractors to get away from these things........

Unfortunately not. There is precisely no risk of that happening. It's not what IR35 judges at all.

Having said that what I would like to see in the nuclear option scenario is somebody actually losing their IR35 case and then going to an ET. It's just a shame they will almost certainly lose. The ET will simply find you are an employee of your co since they judge real arrangements not implied ones.

[Caveat: there was recent case where a Ltd Co contractor WAS actually found to be an employee of the end client - but this was mainly because of TUPE and some very specific highly unusual circumstances]

[beaker]

If the Government just lowered the income tax rates for higher earners then I would argue that few contractors would operate through a company structure as there would be no financial advantage.

[oracleslave]

If the Government just lowered the income tax rates for higher earners

Sounds so simple when you say it quickly.

[kingshuk]

If the Government just lowered the income tax rates for higher earners then I would argue that few contractors would operate through a company structure as there would be no financial advantage.

In fact I don't even need the incentive of lower income tax. Don't do the double NI thingy and I will happily pay up 40% IT.

[gadgetman]

This whole thing about the upper and lower contracts - how on earth do you get to see the lower contract? Do the agencies generally provide this on demand? Are they (legally?) obliged to?

[VectraMan]

If the Government just lowered the income tax rates for higher earners then I would argue that few contractors would operate through a company structure as there would be no financial advantage.

Or just put up CT. Which they are.

[DiscoStu]

Play nicely.

I did give a summary.

I can't help it, I'm a born troll

Thanks for the summary though!

[beaker]

In fact I don't even need the incentive of lower income tax. Don't do the double NI thingy and I will happily pay up 40% IT.

Do any umbrella or EB companies pay the employer's NI for you?

[ASB]

Do any umbrella or EB companies pay the employer's NI for you?

Yes all brollys where you are an employee of the brolly

Of course they actually pay it out of the fees you generate - but that wasn't the question

[beaker]

Yes all brollys where you are an employee of the brolly

Of course they actually pay it out of the fees you generate - but that wasn't the question

There's really no way to win is there...