Contracting role offer - but now IR35 being repealed...

[Inspired]

Hi all,

I currently work in banking in a perm role. I am expecting an offer for a contracting role next week (which would be within IR35). This would be my first ever contracting role.

Given the recent news regarding IR35 rules changing from April 23, how does this affect my negotiating position for a higher daily rate? Does it mean I am in a stronger negotiating position as I could ask to be put outside of IR35 now (is this even possible?), or at least from next April, or is the contracting market now expected to dry up until then?

Many thanks

[mattster]

IR35 is not being repealed..

[cloudninja]

probably going to take a while for companies to change their policies (back)...

[northernladuk]

It's too far away. It's not going to a make a jot of difference right now. Gonna take them awhile to digest the news and see the wording of the legislation and then their risk/legal teams need to get involved and so on.

And don't hold your breath for it going outside when the legislation hits. In HMRC's eyes the client said it's inside so you suddenly saying it's outside when the legislation changes isn't going to wash. Some complication around roles that are blanked inside rather than determined individually as they should have been but HMRC won't care. They will see inside to outside and the only way you can argue your point is in an investigation and you really don't want that.

IMO although the legislation is going to hit Apr 2023 it's going to take a long time to get to normal. Everyone on an inside gig will have to finish the work and move on before switching to outside. No flicking over on the 6th April, or even at next renewal. If the work hasn't changed then nor can the status IMO. But time will tell. No doubt it's going to be discussed endlessly between now and then and we will get this question raised almost daily.

[northernladuk]

P.S please check where you asking questions. The sub heading of General should give you a clue and just looking at the thread headings should tell you this isn't the right place. We can call you a fawning lickspittle in here, we can't in the professional areas of the forums due to heavy moderation

[ladymuck]

Your role has been assessed as inside, and we will have to assume that the assessment was properly conducted and documented. With that in mind, what is it about the working practises that has changed which now ought to deem it outside?

[eek]

Your role has been assessed as inside, and we will have to assume that the assessment was properly conducted and documented. With that in mind, what is it about the working practises that has changed which now ought to deem it outside?

Um has the role been assessed as inside?

The information we have is that the contract is with a bank and that to me implies a blanket ban on PSCs....

[WTFH]

You've not mentioned how long the contract is for.

You could always hold off on accepting any role until April next year and see what happens then.

But any role you accept now is based on the rules as they are now, and the rate now. Not based on a what-if scenario in 6+ months time.

[BlasterBates]

A reminder of how HMRC were approaching IR35 before the legislation, which is about to be repealed:

https://www.qdoscontractor.com/news/...ntractors-ir35

the tax office had sent correspondence to nearly 1,500 contractors currently or previously engaged by the pharmaceutical giant.

In these identical letters, HMRC accuses contractors of wrongly operating outside the IR35 legislation during the tax year, 2018/19. Despite not having reviewed the actual working practices of these engagements, which are often pivotal in an IR35 case, the taxman has taken the view that these contractors are guilty until proven innocent.

It would be interesting to know how successful they were. In any case worth noting.

[ladymuck]

Um has the role been assessed as inside?

The information we have is that the contract is with a bank and that to me implies a blanket ban on PSCs....

It's how I interpreted this bit in bold:

I currently work in banking in a perm role. I am expecting an offer for a contracting role next week (which would be within IR35). This would be my first ever contracting role.

Where did you see anything about a bank? Their current perm role is in banking, that's not necessarily a given that the contract is in the same field