Every single IT project manager at a bank ever

[cannon999]

Well that was the discussion point but can't find it. In theory they should work the taxes out and then credit you for taxes already paid but nothing is that straight forward with HMRC. I'd imagine the fact you've paid a different tax than the ones HMRC think you should have puts a ton of complexity in to it and they can't just count corp tax as an offset to the taxes you owe or something so who knows.

The taxes can't really be counted as paid for the dividends as inside Ir35 means no money for dividends so they would be classed as illegal and it all goes to hell in a handcart. There must be some very complex process of running everything back to day one and starting again.. but that's a total guess with an optimistic outcome. I think it's more likely they'll demand the full amount and it's up to you to then do the paperwork and claw the taxes paid back.

The term of each contract was for a fixed period. Mr Lee worked at NBS continuously from 2007 to December 2014 with the exception of the following periods; 8 (1) 14 September 2012 to 31 October 2012 being the period from the early termination of the NBS contract on 14 September until commencement of the Lloyds contract; (2) 1 November 2012 to 21 April 2013 being the period of the five month contract with Lloyds; and (3) 1 April 2014 to 13 May 2014.

Not sure how accurate this article is? It says from 2011 but the judgement lists longer. If it's really from 2007 to 2014 then 70k figure seems very low if it includes income tax.

[mallisarealperson]

Not seen the contract but it looks like he was there for more than 24 months.

As for the tax paid not paid, whole process with IR35 is nonsense.

Some of my old contracts, I would never have done was it not for being able to expense travel.

Hence why I am still on the bench. In the past I would have just worked away. not any more. Your loss Mr Sunak.

[Fraidycat]

Sounds scary. My contract is probably going to be running for many more years to come due to the amount of new work that always comes through (I am a software developer) but I can't quit a 600/d rate just because hypothetically someone might come for me in the future. My contract is very much outside of IR35 but I am starting to think that maybe I should use a substitute for a couple of days just to cover my own back.

Since April the client is liable for the tax if you status is wrong.
But just to be extra safe, always keep minimal reserves in the company. They cant get blood out of a stone.

[cannon999]

Since April the client is liable for the tax if you status is wrong.
But just to be extra safe, always keep minimal reserves in the company. They cant get blood out of a stone.

I am contracted with a small company so I still determine the IR35 status.

[krytonsheep]

Not seen the contract but it looks like he was there for more than 24 months.

It says:

"Lee worked on multiple contracts and projects with NBS on and off for seven years. The length of the relationship should not be a factor in the decision. Duration is not a case law factor itself, but longevity can result in other stronger pointers of employment crystalise"

[mallisarealperson]

It says:

"Lee worked on multiple contracts and projects with NBS on and off for seven years. The length of the relationship should not be a factor in the decision. Duration is not a case law factor itself, but longevity can result in other stronger pointers of employment crystalise"

It is if he worked on any of them continually for more than 24 months.

[cannon999]

It is if he worked on any of them continually for more than 24 months.

You are confusing IR35 with expense rules.

[GigiBronz]

Why are the old farts around here complaining? They can retire anytime now after years of contracting doing very well.

It's the young generation that inherits this wold and now has to pay the dues and damage the previous did.

[mallisarealperson]

It is if he worked on any of them continually for more than 24 months.

Ok one of the issues we have with IR35
Contract length doesn’t determine IR35 status


For the avoidance of any doubt, there isn’t any one point in time at which an outside IR35 contract is automatically classed as inside the legislation – not after one, two or even twenty years.

But whilst status should be decided after standing back and focusing on the overall picture of the working engagement – from length of time to personal service and control – time spent engaged by the same client could play a part in HMRC taking the view that it could be classed as inside IR35.

As IT Contracting explains, this can even be the case if the contract is renewed – meaning that it’s technically a new engagement. HMRC’s Employment Status Manual states: “Where work is regularly offered and accepted over a period of time a continuous contract of employment may be created.”

But I always in the past never contracted for more than 24 months.

[mallisarealperson]

You are confusing IR35 with expense rules.

I am fully aware of the expense rule. I have always believed maybe incorrectly that staying at the same client for years and years makes you look like an employee.

Used be loads of contractors like this. Had their own desks, parking space etc. They acted like an employee. One of the reasons we are were we are.

Some ltd contractors in the past would be at a client for longer than a permie.