Switch to increased day rate within PS IR35 or leave?

[BradMcA]

If your day rate was £300, working in the public sector happily satisfied your Ir35 status is outside, contracted for two years up until 31/march this year with all invoices and payments made before 6/April.

But the client you do project work for would pay £400 a day to keep you for 2+ more months... Almost certainly putting you within IR35 due to their lack of understanding of the issues would you renew or leave?

[PurpleGorilla]

Switch to increased day rate within PS IR35 or leave?

For two months! Leave!

[PurpleGorilla]

Switch to increased day rate within PS IR35 or leave?

For two months! Leave!

FWIW I am charging £500/d upwards in private sector.

Wouldn't do PS for less than £750/d.

[BigRed]

If you are inside you need at least 35% +expenses, I think mine worked out at nearly 50%. This will then leave you open to HMRC backtracking on existing service, so I would still be out.

[eek]

For two months! Leave!

+1 the risk is that HMRC look at your new inside IR35 contract and decide that

1) Clearly the previous contracts were inside IR35 (however the contractor ignored facts and decided it was outside)
1b) let's issue a bill on the basis that all contracts with that client / agency were inside IR35 and see what happens.

And that is why we (and virtually everyone else)who has read and understood the law) recommends leaving asap and ensuring all invoices are paid by the end of this tax year (5/4/17)..

2 months max additional money isn't worth a 2 year tax bill...


Things I will add as its not clear from your post:-

We suspect any retrospective bill would be based on the historic payments through your current agency - new agency = new contract = probably safety.
If you have been working there for nearly 2 years you cannot claim expenses once you know that contract will go over 24 months.

[psychocandy]

+1 the risk is that HMRC look at your new inside IR35 contract and decide that

1) Clearly the previous contracts were inside IR35 (however the contractor ignored facts and decided it was outside)
1b) let's issue a bill on the basis that all contracts with that client / agency were inside IR35 and see what happens.

And that is why we (and virtually everyone else)who has read and understood the law) recommends leaving asap and ensuring all invoices are paid by the end of this tax year (5/4/17)..

2 months max additional money isn't worth a 2 year tax bill...


Things I will add as its not clear from your post:-

We suspect any retrospective bill would be based on the historic payments through your current agency - new agency = new contract = probably safety.
If you have been working there for nearly 2 years you cannot claim expenses once you know that contract will go over 24 months.

Spot on. In OPs case if he/she is considering staying I would definitely be considering QDOS TLC35.

Whether then having to pay £300+ for 5/6 years afterwards would be worht it (Although its a good thing anyway).

OP - Referral code available - 15% off!

[scooterscot]

Get another job on top of your day job. Two sources of income.

Goodness, what happened to when contractors were real contractors?

[barrydidit]

Get another job on top of your day job. Two sources of income.

Goodness, what happened to when contractors were real contractors?

Was it when they stopped having jobs?

[WordIsBond]

If your day rate was £300, working in the public sector

Have you considered alternative and less painful and prolonged forms of suicide? Just wondering.

[RonBW]

If your day rate was £300, working in the public sector happily satisfied your Ir35 status is outside, contracted for two years up until 31/march this year with all invoices and payments made before 6/April.

But the client you do project work for would pay £400 a day to keep you for 2+ more months... Almost certainly putting you within IR35 due to their lack of understanding of the issues would you renew or leave?

Leave. Increase isn't enough and the contract length isn't enough. Just not worth the hassle / risk.