Risk of taking contract that will be deemed inside by client at later date

[hairymouse]

I might be offered a contract that the agent says will last 3 months, and then be deemed inside IR35.

I am planning to get QDOS to review the current contract and obviously won't sign until they give the OK. In the interview, the working practices sounded very inside even though the client insisted they were not.

Assuming that I'm willing to simply not renew if in 3 months the client deems the role inside, what are the risks of taking the contract now and things I can do to minimise them?

[Paralytic]

No-one can say, especially with so little information.

Is this an actual determination or just a look ahead to see what determination will be made for next April? ie, When is your client making the actual legal determination? If after your 3 month contract, then I guess the risk is a little lower. If during your 3 month contract but you're just told verbally, again, the risk might be a little lower. If the determination is made during your contract and formally documented and then passed to HMRC at some point, then the risk could be higher.

But, despite saying they won't chase people staying at a client and where the role moves from self-determined outside to client-determined inside, no-one here can tell you how HMRC might target people.

Have you read this thread - the responses are pretty much applicable here.

https://www.contractoruk.com/forums/...ml#post2696475

[hairymouse]

Thanks for that, I get that it is hard to determine with so little information. I'm just going on snippets that I got in the face to face meeting with the client (waffle) and this line from the agent:
"the contract is up until February 2020 and then will be reviewed inside IR35. They will extend but not sure if this will be inside or outside."

I don't think that if the client deems the role is inside while I am doing it, it might not matter if I don't renew or not.

[ladymuck]

The agent quote could be a typo or just ignorance. I'd read that as it being reviewed against IR35 and at this point they don't know which way the determination will fall.

As above, too many unknowns. You could take the job and just be prepared to walk in Feb?

[Old Greg]

Give them an Inside IR35 price and an Outside IR35 price and invite them to choose how they wish to engage.

[malvolio]

Give them an Inside IR35 price and an Outside IR35 price and invite them to choose how they wish to engage.

Yeah, that'll work out well...

[Lance]

I might be offered a contract that the agent says will last 3 months, and then be deemed inside IR35.

I am planning to get QDOS to review the current contract and obviously won't sign until they give the OK. In the interview, the working practices sounded very inside even though the client insisted they were not.

Assuming that I'm willing to simply not renew if in 3 months the client deems the role inside, what are the risks of taking the contract now and things I can do to minimise them?

how can a contract be outside and inside?
This reads to me like it's an inside gig, but they don't care what you do about that whilst it's your problem.
Given that you know the role is inside, are you comfortable to determine it as outside for your own purposes (that's fraud IMO)...

[RobScott]

Inside IR35 never a risk right!?

I might be offered a contract that the agent says will last 3 months, and then be deemed inside IR35.

I am planning to get QDOS to review the current contract and obviously won't sign until they give the OK. In the interview, the working practices sounded very inside even though the client insisted they were not.

Assuming that I'm willing to simply not renew if in 3 months the client deems the role inside, what are the risks of taking the contract now and things I can do to minimise them?

Inside IR35 never a risk right!?

[DeludedKitten]

The agent quote could be a typo or just ignorance. I'd read that as it being reviewed against IR35 and at this point they don't know which way the determination will fall.

As above, too many unknowns. You could take the job and just be prepared to walk in Feb?

That would be my interpretation as well - they don't know whether the role will be assessed to be inside or outside until February when they will make their assessment.

In the meantime, it's the contractor's responsibility to make the determination and any deductions.

I'd take the role and then review in February and see whether to stay or go.

[WordIsBond]

If you walk in February you're probably not high risk. HMRC will be looking for big and easy targets, not people who were only in a gig 3 months. They have to build a case all for chasing a couple thousand quid.