IR35 reform pushed back

[northernladuk]

I wonder how many contractors who's clients banned PSCs (with no determination) and have already already moved to Umbrella's have today contacted their agency to see if they can redirect their invoices back to their PSCs.

I'll bet it's quite a few but they have completely missed the fact they can't until the client makes a statement unbanning PSCs.. And that certainly won't have happened 3 working hours after the announcement during a pandemic.

[NeverTheTwain]

I was in the middle of getting my references checked and was straight on the phone to the agency today to ask that the contract be changed to allow for ltd companies again. Not sure how long the banks need to work out what they will do. I would be willing to wait an extra few weeks if its possible. Probably needs one big bank to allow PSCs and the rest will join hopefully.

[SteelyDan]

I was in the middle of getting my references checked and was straight on the phone to the agency today to ask that the contract be changed to allow for ltd companies again. Not sure how long the banks need to work out what they will do. I would be willing to wait an extra few weeks if its possible. Probably needs one big bank to allow PSCs and the rest will join hopefully.

It'll be interesting to see if any changes occur at banks & other blanketers & how quickly those changes become apparent.
I'm thinking also, or maybe hopeful, that post-yesterdays delay to off-payroll changes, that a lot of frantic back-office work is happening within agencies.
How soon that is done & any changes are reflected on the job-boards will be interesting too.

[mogga71]

That is pure, pure quality and exactly sums up the situation.

[northernladuk]

That is pure, pure quality and exactly sums up the situation.

I think it was aimed at the poster he quoted rather than the situation but yes, sums it up very well.

[mogga71]

Well nothing should change if they have provided an SDS with an explanation of why. Doesn't matter what format it is in. The client has set out the rules of the engagement. If these don't match an outside contract then the contract is worthless.

The contractor has no choice but self declare inside. If they don't they will be committing fraud in HMRC's eyes and their insurances will be invalid.

IMO these changes have opened the chance for a permatractor that has struggled with all this to properly shoot themselves in the foot. This time next year they've another year of penalties and no insurance.

Totally agree with this. I have already had a permie contractor at my Bank indicating they will do this if they can.

Its a personal situation obviously, but if I were them I would use the extra time to get my house in order and immediately look into closing down the Company.

Question. If you get your company struck off (rather than MVL) , what is a reasonable time before you can create a new Limited Company?

I should stress .... new Ltd Company obviously not at the same gig.

[northernladuk]

If you've not gained a tax advantage then you can do it immediately.

[Wobblyheed]

Not at all. Just stating facts. Many people that are still not understanding what has happened and why they got in inside determination will now thing they are free to work outside when the client has clearly stated how they want to treat the contractor. That's just ridiculous and all it does is add another year to the problem they are struggling with now. It's just common sense.

But they will be. No matter what doom and gloom spin you put on it.

[northernladuk]

But they will be. No matter what doom and gloom spin you put on it.

But they won't. Client has admitted the conditions of the contract don't match the reality so they won't be outside.

OK I admit.. Yes they will be, with the wrong determination and zero insurance. That's just dumb whatever spin you want to put on it.

You wonder why I sound like doom and gloom when people wont think or listen.

[Wobblyheed]

Why? The delay is based on the virus alone. It's not like it's to debate the details of the implementation like the other delays. When the virus calms down it will hit in it's current form. May not but that's the best way to plan. It was going ahead and it will again. Even Sir Dave Chaplin can't stop that.

How does someone on a self employed visa work as a LTD company? But that aside
Working from home during a pandemic is completely different to a client not wanting him to. Pointless us carrying the discussion on if you can't see the difference.

Correct a high one as he knows exactly where the client will go next year. From what I've read recently HMRC can consider that fraud and open investigations where the wouldn't normally.

And yes, he can work the year if he has no other income but that doesn't mean it's right or he's going to be in a better place when it hits. All he's doing is delaying the inevitable. Hence my words of caution that nothing has changed, just delayed.

I'm still don't get his engagement method though. Self employed inside/outside?

The inevitable what? It's by no means inevitable that he will be investigated by HMRC.