The Daily Rumour Mill

[mjshrimpton]

Partly true, unless the composite/umbrella are deemed to be the employers (which is not all that difficult to prove - it's certianly a lot easier than the original IR35 test) and become liable for the missing payments. Plus, of course, if that particular line of work dries up, it won't do much for their future income, will it...

I was informed by QDOS that in an IR35 investigation, it is the Employers, i.e. GIANT Powerhouse (xxxx) who are investigated for PAYE/NIC issues in the first instance, and then if the company is closed, the directors are liable for any missing money. The contractor using them was not a director so should not be part of the process.

Makes you wonder though if an ex-Giant user was now a member of the PCG, whether their insurance policy would cover this....

[Bluebird]

Makes you wonder though if an ex-Giant user was now a member of the PCG, whether their insurance policy would cover this....

probably not.

[malvolio]

Why wouldn't it? As long as the investigation wasn't in progress when you join, PEI coverage is unconditional.

You're wrong anyway. IR35 is a personally assessed tax, payable by the company and assessed on the basis that you are a disguised employee. You cannot be liable for IR35 if you are employed by anyone, an that includes Umbrellas. So your scenario won't happen.

[Bluebird]

You cannot be liable for IR35 if you are employed by anyone, an that includes Umbrellas. So your scenario won't happen.

presuming you pay full PAYE ?

[mjshrimpton]

Why wouldn't it? As long as the investigation wasn't in progress when you join, PEI coverage is unconditional.

You're wrong anyway. IR35 is a personally assessed tax, payable by the company and assessed on the basis that you are a disguised employee. You cannot be liable for IR35 if you are employed by anyone, an that includes Umbrellas. So your scenario won't happen.

So if it is personally assessed and then payable by the company, then all the ex-giant and other composite users can't be subject to extra tax based on a deemed salary, so going back in the Tax Tardis to december 2004, or indeed 1904 is neither here nor there?