State of the Market

[simes]

Why would a contract in the Netherlands be Inside IR35?

Exactly as another has just said. Liberty Global are based in NL, but they own UK-based Virgin Media. But even if I would not be working for Virgin, the extra careful powers that be said exactly that. We have a UK based entity!!

Between Covid and now, an agent got me back into LG on an OIR35 contract. Second day in he said, they have now to rethink it and put me IIR35. I left.

The whole thing is a right mess now.

I would not have minded paying more taxes to help recover the Government position post Covid; they could just have upped the Corp Tax rates for contractors. This current thinking however has just caused widespread confusion across the entire playing field.

[northernladuk]

Between Covid and now, an agent got me back into LG on an OIR35 contract. Second day in he said, they have now to rethink it and put me IIR35. I left.

Another victim of this ridiculous rule that they can change the determination up to the first pay. This is happening more and more. Just ridiculous.

[simes]

Another victim of this ridiculous rule that they can change the determination up to the first pay. This is happening more and more. Just ridiculous.

Ah, was not aware this is becoming a constant.

Thought I might have been gloriously unique. (Don't explore that one)

[ladymuck]

I would not have minded paying more taxes to help recover the Government position post Covid; they could just have upped the Corp Tax rates for contractors. This current thinking however has just caused widespread confusion across the entire playing field.

They did up the Corp Rate tax, but for everyone not just contractors. Or did you miss that the rate changed from April 2023?

[simes]

They did up the Corp Rate tax, but for everyone not just contractors. Or did you miss that the rate changed from April 2023?

Sorry, I meant more of a Corp Tax increase specifically for Contractors. Yeah, I did see that rate change.

[jamesbrown]

Sorry, I meant more of a Corp Tax increase specifically for Contractors. Yeah, I did see that rate change.

It isn't really possible to do this precisely, but you can be pretty sure it was a consideration in the way they designed the new CT regime because the marginal rates are particularly high in the band where most contractor's businesses will fall.

Regarding IR35, it's the first payment from the client to the agency, where an agency exists, so they can actually change the determination quite a lot later, given invoice factoring.

[eek]

Another victim of this ridiculous rule that they can change the determination up to the first pay. This is happening more and more. Just ridiculous.

well beyond the first pay - they can do it up to the point the end client pays the first invoice which may be 120 days after you start work -monthly billing with client on 90 day terms with the agency.

[simes]

well beyond the first pay - they can do it up to the point the end client pays the first invoice which may be 120 days after you start work -monthly billing with client on 90 day terms with the agency.

Grief, what a farce.

Can I ask if there is yet, any ability for a contractor to be in a contract for some time and, rather like how the HMRC were able to investigate and claw back taxes, for the contractor to investigate, lodge a case, and claw back? Apologies if already discussed in depth elsewhere.

[northernladuk]

Grief, what a farce.

Can I ask if there is yet, any ability for a contractor to be in a contract for some time and, rather like how the HMRC were able to investigate and claw back taxes, for the contractor to investigate, lodge a case, and claw back? Apologies if already discussed in depth elsewhere.

You mean from a determination change after starting? No, thems the rules. The contractor should know them and consider the risk when accepting any outside gig. It's absolutely rubbish, we shouldn't have to run that gauntlet but rules is rules.

Can you claw back from an incorrect determination? No. The first port of call is to work it out with your client which isn't going to happen.

[jamesbrown]

Grief, what a farce.

Can I ask if there is yet, any ability for a contractor to be in a contract for some time and, rather like how the HMRC were able to investigate and claw back taxes, for the contractor to investigate, lodge a case, and claw back? Apologies if already discussed in depth elsewhere.

Well, there is a client-led status disagreement process