Staying in the same public sector contract after April 2017

[LondonManc]

Yep.

If you were paying the incorrect amount of tax at one client you must have been doing it at other clients.

Not necessarily; it can depend on what part of your skillset was used.

[psychocandy]

Hi,
I'm currently in a public sector contract which is likely to be renewed. The client wants to renew it and I'm tempted, but what I'm wary of is a retrospective IR35 investigation if found within Ir35 come April 2017, how likely is that? I just want to get a feel for this as my accountant says it's possible, but unlikely. The kicker is that I've been with this client since October 2016 so any retrospective action wouldn't be too far back, but what worries me is if the contracts prior to my current public sector role are investigated - I'm guessing that once HMRC investigates they really pull your pants down....?

Currently looking at permanent roles, but it's not that easy.

One option is Abbey Tax Survive35 (expensive) or QDOS TLC35 (reasonable)- both will cover you for retrospective action. (but not going forward). QDOS is £300 or so - I can give you a link for 15% if you like :-)

No brainer if you intend to stay I'd say.

BUT it could still turn into a right PITA if you ask me. I considered this option though but in the end thought no way too much hassle anyway.

[northernladuk]

One option is Abbey Tax Survive35 (expensive) or QDOS TLC35 (reasonable)- both will cover you for retrospective action. (but not going forward). QDOS is £300 or so - I can give you a link for 15% if you like :-)

No brainer if you intend to stay I'd say.

BUT it could still turn into a right PITA if you ask me. I considered this option though but in the end thought no way too much hassle anyway.

With caveats surely. Contract has to be checked and working practices OK?

[psychocandy]

With caveats surely. Contract has to be checked and working practices OK?

Ah yes of course, but they are slightly different.

Abbey insist on a complete full contract review.

QDOS are less stringent - you've just got to agree that a few items are true. Obvious stuff like right of sub etc.

With QDOS at least, no working practices check.

[SueEllen]

Not necessarily; it can depend on what part of your skillset was used.

True but if you were HMRC wouldn't you try it on?

[Biggles78]

Thanks for the input guys. Psychocandy, if you have that link, please can you send it over

Cheers

[LondonManc]

True but if you were HMRC wouldn't you try it on?

Definitely - if you get one apple, shake the tree and see what else falls out.

But similarly as the contractor, it's up to you to demonstrate why the others shouldn't be looked at - QDOS approved, working practices signed off, etc.

[breaktwister]

I'm wary of is a retrospective IR35 investigation if found within Ir35 come April 2017......my accountant says it's possible, but unlikely

A fellow contractor in my current gig told me that his accountant advised him that he would only be taxed 20% if he stayed on as a "deemed employee".

Moral of the story is that accountants are tulipting it that a large number of PSC will disappear and they will do or say anything to get you to continue on as a PSC. If you go the umbrella route you typically don't need an accountant.

[northernladuk]

A fellow contractor in my current gig told me that his accountant advised him that he would only be taxed 20% if he stayed on as a "deemed employee".

Moral of the story is that accountants are tulipting it that a large number of PSC will disappear and they will do or say anything to get you to continue on as a PSC. If you go the umbrella route you typically don't need an accountant.

The moral of this story is to not listen to what the contractor says to you and come to another misguided conclusion and post it on a forum.

[NHS1979]

If switching ps roles to a new ps gig with new ps end client and new agency post-6th April - would you advocate umbrella or not? Saw earlier reference saying umbrella more likely to flag to hmrc than normal psc-agency-client if inside IR35?