IR35 and length of contract

[tay]

I know that length of contract shouldnt be irrelevant.. but most IR35 cases I read about seem to be contractors who have been at the same client site for 2+ years. Impossible thing to know for sure as HMRC dont divulge why they choose certain contractors for investigation. But do the people at the coal face see a theme of longer the contrcator.. more chance of investigation?

[ratewhore]

There's an argument that it is more cost-effective for HMRC to target the longer contracts. If they win the case, then their tax-take for that case would be more than it would be for a shorter contract.

In which case, it is more beneficial to the taxpayer, which includes me and you, so we should be thanking them really...

[Sockpuppet]

I'd say it would be easier to argue shorter term contracts. Yes, it has no relevance but I think that shorter contracts by the nature of the work will probably tend to have working practices outside IR35.

Shorter term projects (<3 months) your less likely to be considered part of the furniture or as a perm by other people there.

You may be more likley to have several running at the same time, just finishing odds and ends.

No D&C as usually its a fix it now policy other than a plan, then fix.


I don't think the tax take is different. If you have 12 1 month contracts you may get paid more than 1 12 month contract.

[Fred Bloggs]

I don't think the tax take is different. If you have 12 1 month contracts you may get paid more than 1 12 month contract.

Fair point, however, each contract is considered and investigated on it's own merits. Therefore if I have 4 or 5 contracts in a 2 year period I am (surely?) less likely to be a target?

[tay]

Fair point, however, each contract is considered and investigated on it's own merits. Therefore if I have 4 or 5 contracts in a 2 year period I am (surely?) less likely to be a target?

Thats my query really, my longest contract under a ltd comonay is 12 months, the rest much less. I would be a bit of a hassle to investigate comapred to someone who has been 3 years at the same place. I am not looking for gurantees.. gawd knows there are none of these when it comes to IR35, just wanted to know if there had been many investigations against shorter term contracts.

[ratewhore]

I don't think the tax take is different. If you have 12 1 month contracts you may get paid more than 1 12 month contract.

I'm assuming the costs involved will be more for 12 investigations than 1 investigation...

[Fred Bloggs]

My layman's take on it is that my short term projects are more "contractor like" than "employee like".

I'll challenge anyone to show me an "employee" with 6 different employers in the last 5 years, some of whom they have worked for multiple times within that 5 years period. Sometimes concurrently.

Hmmm, thought so, there aren't any................

[swamp]

IR35 has nothing to do with length of contract. But I think there is a limit of one week whereby you will be outside if all your contracts are less than seven days.