Fellow contractors attitutes to IR35

[realityhack]

8 of the contractors I work with hadn't even heard of IR35 until I mentioned it in a conversation about renewal and contracts - when I said I'd had my contract sent off for review they looked at me blankly. Only one of them has subsequently followed my advice and is now with a proper accountant and solicitors making the best steps forward.

I think they think it'll never happen to them - I said that no-one's immune, even the most fastidious operators can be hauled in for an investigation and that's going to hurt.

Touch wood eh?

[realityhack]

That's all very well but did the pimps reflect the same changes in the upper contract (Pimp<->Client) ? Do many people even bother checking or at least asking the pimps the question ? Do many people even know that if there are differences between your contract and the upper contract that can cause problems ?

That's another thing entirely - anyone encountered problems with the agency when inserting a back-to-back clause in your contract? I don't think my agency even noticed.

[beercohol]

That's all very well but did the pimps reflect the same changes in the upper contract (Pimp<->Client) ? Do many people even bother checking or at least asking the pimps the question ? Do many people even know that if there are differences between your contract and the upper contract that can cause problems ?

Since this is beginning of the contract, both you and your agency are usually on very good terms, so then pop a quick one-liner question to them by email so they dont feel threatened. "Just a quick question, are the changes back-to-back?"

They'll usually answer with a glib 'yes' to satisfy you. Now you have done your due diligence. Just don't delete the email thread.

[VectraMan]

The attitiude I've seen most is "my accountant tells me what to do".

I did see on another forum one contractor advising a newbie contractor with "IR35 doesn't kick in for the first 2 years".

[Jog On]

Most of the contractors I've worked with have been going through umbrella companies.

The Ltd ones have said things like:

"Just do some private work for a mate and invoice for it and you'll be OK as you've got more than 1 client at a time"

"I pay myself £25k salary so I won't get investigated"

"I only claim my travel so I won't get investigated"

"We're through the same agent so if you're outside then I'm outside as well"

[Bumfluff]

I take a middle ground I pay myself market rate as if I was a permy but still leaves alot for dividends. I do all I can to make sure Im outside of IR35 in terms of contracts and the way I work. I dont take the p*ss with minimum wage. I do know alot of people still using off shore schemes though but most of these are Auzzies on non nationals who just say they will go home if they IR come looking. IR should have a look at the Auzzies and non nationals who do this as there are ******* sh*t loads of them do this and give us nationals a break for once.

[Jog On]

I take a middle ground I pay myself market rate as if I was a permy but still leaves alot for dividends. I do all I can to make sure Im outside of IR35 in terms of contracts and the way I work. I dont take the p*ss with minimum wage. I do know alot of people still using off shore schemes though but most of these are Auzzies on non nationals who just say they will go home if they IR come looking. IR should have a look at the Auzzies and non nationals who do this as there are ******* sh*t loads of them do this and give us nationals a break for once.

I pay myself minimum wage and claim everything I can - I think IR should concentrate their efforts and resources on where they are more likely to get a decent return instead of spending 50k trying to recover 2.5k

[Bumfluff]

To be honest the different approachs people take reflect the level of risk they want to take, I'm a worrier so take the middle ground.

[Andy2]

I have seen lots of Auzzies using offshore schemes and none of them were ever caught.Makes you wonder why you bother paying proper tax

[gtr]

So supposing you were investigated by the IR over IR35 what would happen worst and best case scenarios?