Offer to go perm, IR35 issues

[LisaContractorUmbrella]

So a new development...

The IR35 lady at the accountancy thinks that HMRC perceive the contract period prior to substantive employment as inside IR35.

This is because the organisation is looking to retain me as a person and its not about the service. So they always had the intention of appointing to a permanent role and used it to test out the people.

I could argue that the contract was setup to run for the life of the project only, even though the project has now been delayed, but the organisation is willing to pay off the agency so it gets around any clauses.

I suppose options are:

Proceed and say nothing, if it comes, have the argument with hmrc and possibly have to pay out

Pay up now!

Trouble is if HMR&C do take umbridge you will have to pay out an awful lot more later than you will now

[VectraMan]

Defo do not pay up now. Take the permie job if you want it. Tell ( don't ask ! ) your accountant to wrap up the Co as though it is outside IR35. I would think it's highly unlikely you'll ever hear anything about it ever again. You rarely get 'clear' answers.

WHS. You did the right thing at the time, and couldn't have known you would end up taking a permanent job.

[theonewho]

Trouble is if HMR&C do take umbridge you will have to pay out an awful lot more later than you will now

Hi, why would I need to pay more? Fines?

[LisaContractorUmbrella]

Hi, why would I need to pay more? Fines?

Fines and interest if things go against you

[theonewho]

I think maybe the trick that has been missed and I didnt make clear, is that this job is being advertised internally so is open to competition.

The only downside I see is that if the contract was to be terminated early by the client with no penalties to the contractor, and in addition the client pays a 're-engagement' penalty to the agency, wouldn't this look bad in an investigation?