Staying in the same public sector contract after April 2017

[teapot418]

So how do contractors on assignments till end of March escape this IR35 determination stuff before they leave? The agency concerned has already emailed the client - I do not want something going back to HMRC saying I am inside IR35. The agency will have no one in this role come April so why do it? Am stressed by this

I'm not surprised you're stressed. If it does come back as 'inside' remember you can ask them how they came to the decision.

[NHS1979]

I'm not surprised you're stressed. If it does come back as 'inside' remember you can ask them how they came to the decision.

I've sent a strong email to the agency just now pointing out both i and any payments will be finished before 5th April and asking why they are chasing the client for a determination, when they have given the client till to do it, and asking whether they will send that determination to HMRC even though it is irrelevant as I will be gone. See what they say - makes me think I should immediately terminate and leave in 28 days

[northernladuk]

There is gonna be tears....

[Semtex]

An outside ruling would be best......

Mate we know this..... the problem is that PS orgs are making blanket decisions.

there is no guarantee.

safest route for the majority is to leave

[psychocandy]

Get insurance

Yep - an option. Abbey Tax will protect you for retrospective claims (if you're initial contract passes the review - you have to pay for this).

Not cheap - depends on contract value but £300-£400 a year. With £185 for review its going to be close to £1K for a few years.

[malvolio]

Yep - an option. Abbey Tax will protect you for retrospective claims (if you're initial contract passes the review - you have to pay for this).

Not cheap - depends on contract value but £300-£400 a year. With £185 for review its going to be close to £1K for a few years.

...set against a potential liability of a few tens of thousands...

[Andy Hallett]

So how do contractors on assignments till end of March escape this IR35 determination stuff before they leave? The agency concerned has already emailed the client - I do not want something going back to HMRC saying I am inside IR35. The agency will have no one in this role come April so why do it? Am stressed by this

It's a sensible thing to do. Remember this relates to 'payments on or after 6th April'. If a contractor doesn't get their act together and we end up paying after that date we have a legal obligation to deduct (if inside).

Should we get an inside determination we need to change the contracts to reflect that, as our current contracts reflect a situation where the PSC decides status and we pay gross etc.

For the avoidance of doubt, our only obligation in respect of communicating any form of status is via RTI. Therefore, no payment post April 6th = no communication of a now technically hypothetical and worthless determination of services not provided.

[teapot418]

It's a sensible thing to do. Remember this relates to 'payments on or after 6th April'. If a contractor doesn't get their act together and we end up paying after that date we have a legal obligation to deduct (if inside).

Should we get an inside determination we need to change the contracts to reflect that, as our current contracts reflect a situation where the PSC decides status and we pay gross etc.

For the avoidance of doubt, our only obligation in respect of communicating any form of status is via RTI. Therefore, no payment post April 6th = no communication of a now technically hypothetical and worthless determination of services not provided.

Still - should the OP ever have an IR35 investigation, and the client has already determined the role to be "inside", it's not off to the best start. And there must be a risk that some clients may proactively provide the information to HMRC under the guise of "ensuring their off-payroll workers are paying the right taxes". Or is this overly paranoid?


Edit: Or what jb said much more eloquently here
http://forums.contractoruk.com/publi...ml#post2373477

[Andy Hallett]

To answer your question, it is being over paranoid.

[northernladuk]

To answer your question, it is being over paranoid.

Yeah.. Take the tin foil tea cosy off...