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Going back to old client, now inside IR35?

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    Going back to old client, now inside IR35?

    Hi everyone,

    I left my contracting gig with a bank in April after nearly 5 years because they wanted me to switch from an outside to an inside IR35 contract. At the time I didn't want the continuation in the same job, with no doubt very similar working practices, in case I was investigated.

    I ended up taking the summer off, taking some exams, and I've just started looking for work now. The market's busy, but a lot of the jobs seem very niche, and the ones I could apply for are a lower rate than my old gig.

    I'm pretty sure the bank would take me back (they didn't want me to leave), but I still have concerns about whether that would put me in the firing lines for the revenue, if not now then when this 'soft touch' period is over. It's been 6 months since I left, and most likely if I did go back it would be on a different project, but my working practices (remote work, etc) are likely to be quite similar, although with the new inside IR35 caveats (holidays, pension, etc).

    Anyone got any thoughts on this? Any help would be greatly appreciated!

    #2
    I think it definitely opens you up to an investigation for the time you were there outside IR35 if you return to the same client, on a similar role, now inside IR35.

    So there is risk in my mind. So it comes down to risk/reward. How much of that risk for the previous period can be covered with IR35 insurances etc?

    Not sure what others think.
    First Law of Contracting: Only the strong survive

    Comment


      #3
      Are you sure you were really outside to start with? 5 years is a long time.
      Make Mercia Great Again!

      Comment


        #4
        I personally don't think 6 months is enough and lack of another client in between could be problematic. A short gap and going back might just look like you are playing the game. I think it comes with risk but the question is can you afford not to go back? If you can't you've no choice. If you've got a choice then I don't think hanging on to an old clients coat tails is the way forward at the moment.

        That said, the length of time you were at your client is another consideration. 5 years is huge and very unlikely you'll be able to prove that was outside on it's own without the move to inside, so on that basis alone I'd not go near that client for a very good period. 5 years with a 6 month break looks even worse IMO.

        Problem is we just don't know. It's only 6 months in to the new world and the new regime hasn't been tested yet so we can only provide guesses. HMRC may never go after outside to inside, they may come down hard. Who knows but 5 years history with an extremely questionable outside determination then this is a no way for me.
        'CUK forum personality of 2011 - Winner - Yes really!!!!

        Comment


          #5
          Originally posted by BlueSharp View Post
          Are you sure you were really outside to start with? 5 years is a long time.
          Absolutely and it definitely wasn't because the client moved it inside. OP needs to just play hide from HMRC on this one.
          'CUK forum personality of 2011 - Winner - Yes really!!!!

          Comment


            #6
            There is a slight risk involved, but almost zero.

            Thousands upon thousands of "contractors" made the switch to Inside without a seconds hesitation with virtually no change to anything other than how they got paid. These people are well known (apparently) to the government so it stands to reason they'd be getting blasted in the ass first at some point, but the chances of them being pulled up are basically zero despite the scaremongering you might read on here.

            You've got about a 6 month gap which puts you at even lower risk.

            Comment


              #7
              Same agency or a different one?

              But remember HMRC are desperate for money - they don't put 2.5% on National Insurance for the sake of it.

              merely at clientco for the entertainment

              Comment


                #8
                Originally posted by ensignia View Post
                There is a slight risk involved, but almost zero.

                Thousands upon thousands of "contractors" made the switch to Inside without a seconds hesitation with virtually no change to anything other than how they got paid. These people are well known (apparently) to the government so it stands to reason they'd be getting blasted in the ass first at some point, but the chances of them being pulled up are basically zero despite the scaremongering you might read on here.

                You've got about a 6 month gap which puts you at even lower risk.
                lower risk, but a far larger impact. 5 years of back tax if it's just one contract. Ouchie..


                See You Next Tuesday

                Comment


                  #9
                  Originally posted by ensignia View Post
                  There is a slight risk involved, but almost zero.

                  Thousands upon thousands of "contractors" made the switch to Inside without a seconds hesitation with virtually no change to anything other than how they got paid. These people are well known (apparently) to the government so it stands to reason they'd be getting blasted in the ass first at some point, but the chances of them being pulled up are basically zero despite the scaremongering you might read on here.

                  You've got about a 6 month gap which puts you at even lower risk.
                  You do often tout this and it's a fair one to point out but you've zero evidence of it. I don't agree the chances of them being pulled up are zero. HMRC did say they wouldn't go after them but there was some noise after they may.. and that's the ones that switched outside to inside with the same client. The OP's situation is new and wouldn't be covered by HMRC's promise. The didn't say they wouldn't go after people who start again at a client so even if they honour their word the OP doesn't fall in to that category. The outside inside people will be covered by the amnesty, the OP not so.

                  And I do think you've got to consider the OP's time and rather delicate outside determination during that time. Small risk yes, huge fall out if that risk is realised. Plenty of gigs out there, no need for the OP to expose themselves to any risk at this point IMO.
                  'CUK forum personality of 2011 - Winner - Yes really!!!!

                  Comment


                    #10
                    Originally posted by LouC View Post
                    Hi everyone,

                    I left my contracting gig with a bank in April after nearly 5 years because they wanted me to switch from an outside to an inside IR35 contract. At the time I didn't want the continuation in the same job, with no doubt very similar working practices, in case I was investigated.

                    I ended up taking the summer off, taking some exams, and I've just started looking for work now. The market's busy, but a lot of the jobs seem very niche, and the ones I could apply for are a lower rate than my old gig.

                    I'm pretty sure the bank would take me back (they didn't want me to leave), but I still have concerns about whether that would put me in the firing lines for the revenue, if not now then when this 'soft touch' period is over. It's been 6 months since I left, and most likely if I did go back it would be on a different project, but my working practices (remote work, etc) are likely to be quite similar, although with the new inside IR35 caveats (holidays, pension, etc).

                    Anyone got any thoughts on this? Any help would be greatly appreciated!
                    If it's a Bank then the chances are that they have not made the decision that you are now inside ... instead they have a blanket ban on all PSCs in place? That is a different thing altogether. It's exactly the position I, and many others are in. My contract has never actually been deemed as 'inside'.

                    Also, have you closed your PSC down? If you have then it's another tick in the positive column of 'Not being investigated' spreadsheet.
                    Last edited by mogga71; 7 September 2021, 12:43.

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