IR35 concerns

[tammy15]

Hi,
We got few long term contractors. One of them was working as a permanent and converted to contractor 3 years back. He is working as a tech lead. There are no change in duties. But 3 years back he was a developer and now acting as a Team lead. Initially it was well kept secret that he is a contractor. But it eventually came out. Still not many people know that he is a contractor. Another person is on contract for 4 years as a Tester but there no difference in duties from other testers. And there is another contractor acting as a team lead who just completed 2 years as a contractor.
My question is - are there any IR35 violations here?

[NotAllThere]

If he's done a Fri-Mon perm-contractor conversion, which seems the case, and he's not accounting for his income in accordance with IR35 rules (but of course he might be, you can't possibly know), then if he's investigated, he'll be found to owe HMRC a lot of money.

It is the contract and working practices that determine whether IR35 applies.

Why do you care?

[Unix]

Hi,
We got few long term contractors. One of them was working as a permanent and converted to contractor 3 years back. He is working as a tech lead. There are no change in duties. But 3 years back he was a developer and now acting as a Team lead. Initially it was well kept secret that he is a contractor. But it eventually came out. Still not many people know that he is a contractor. Another person is on contract for 4 years as a Tester but there no difference in duties from other testers. And there is another contractor acting as a team lead who just completed 2 years as a contractor.
My question is - are there any IR35 violations here?

IR35 is dead, he may as well worry all day about getting hit by lighting.

[MrMarkyMark]

How about you mind your own?

HTH

[mudskipper]

Hi,
We got few long term contractors. One of them was working as a permanent and converted to contractor 3 years back. He is working as a tech lead. There are no change in duties. But 3 years back he was a developer and now acting as a Team lead. Initially it was well kept secret that he is a contractor. But it eventually came out. Still not many people know that he is a contractor. Another person is on contract for 4 years as a Tester but there no difference in duties from other testers. And there is another contractor acting as a team lead who just completed 2 years as a contractor.
My question is - are there any IR35 violations here?

To be clear, IR35 is a consideration for the contractor, not for the client they're working for.

[northernladuk]

They are all most definitely inside IR35. If they are accounting as outside which I'll bet they are then yes, there are a couple of people who are going to be quite a serious situation should HMRC come calling.

I'd guess the OP is considering in dobbing them in to HMRC for a percentage of the money HMRC will recover... Which will be cobsiderable in this situation.

[Milkyway]

Considering this post is in "General", I think the OP is simply trolling.

@OP: IR35 is not a concern for the client or even the agency. It is a concern for the contractor.
This is exactly why the clients love hiring contractors - since they can hire someone with the power to fire them anytime they wish AND never have to pay the employer's NI.
They can't do these with permies.

The contractors are the ones who will end up paying lots of tax and not only the Employee's NI but also the Employer's NI too when Hector comes knocking (on them, that is)
They will call on you too, BUT you are free to happily tell them - yeah you have full control over them and supervised and directed them too. That will end your so-called contractor's lives!

Its a win win all along for the client co.
I take it you are the end client or the agency.

In that case, you have enjoyed a long time of not having to pay any employer's NI, by hiring those risk taking employees - well... your contractors, I mean

Are you dobbing them in?

I think HMRC should introduce a law to ask the client co to pay for the employer's NI etc too - that way the clients will also assume some serious responsibility in setting up/agreeing to IR35 compliant/business-like proper working practices, etc., and not just use IR35 and contractors as a tool to minimise their tax and NI liabilities.

[NotAllThere]

An actual fri-mon case may allow for employment to be established, never mind IR35 applicable.

[northernladuk]

An actual fri-mon case may allow for employment to be established, never mind IR35 applicable.

So it is indeed and issue for the client they are working for..... You can bet your bottom dollar someone will still believe they can sue for wrongful termination and will probably win.