Staying in the same public sector contract after April 2017

[neil99]

Hi All

Are people planning to leave their current contracts by April 2017 ?

What's the chances of being billed for PAYE from the date they started.

I'm assuming the revenue will investigate anyone who goes from outside to inside IR35 working on the same contract or similar ?

[northernladuk]

Hi All

I'm telling people at work they'd better leave their current contracts by April 2017 or face being billed for PAYE from the date they started. For some people this would be as far back as late 2013.

I'm assuming the revenue will investigate anyone who goes from outside to inside IR35 working on the same contract or similar. It might be a nasty surprise from people.

If I were you I'd just get your head down and look after your own business. If they act on your advice and something changes between now and then you could land in hot water, not least if your client gets wind of what you are doing and bins you.

Let them make their own decisions.

[MrMarkyMark]

Hi All

I'm telling people at work they'd better leave their current contracts by April 2017 or face being billed for PAYE from the date they started. For some people this would be as far back as late 2013.

I'm assuming the revenue will investigate anyone who goes from outside to inside IR35 working on the same contract or similar. It might be a nasty surprise from people.

Where did you read this particular retrospective tax part?

If I were you I'd just get your head down and look after your own business. If they act on your advice and something changes between now and then you could land in hot water, not least if your client gets wind of what you are doing and bins you.

Let them make their own decisions.

This.

[eek]

Hi All

I'm telling people at work they'd better leave their current contracts by April 2017 or face being billed for PAYE from the date they started. For some people this would be as far back as late 2013.

I'm assuming the revenue will investigate anyone who goes from outside to inside IR35 working on the same contract or similar. It might be a nasty surprise from people.

Why? How have you jumped to the conclusion that the changes will be retrospective. Do you have anything that backs that up outside your own imagination.

[northernladuk]

Why? How have you jumped to the conclusion that the changes will be retrospective. Do you have anything that backs that up outside your own imagination.

A little knowledge is a dangerous thing.....

[jamesbrown]

This isn't a clarification of existing legislation, it's new legislation, so there is literally no prospect of retrospective taxation. Indeed, for those desiring to remain in contract beyond April 2017, it will require a change in contract, because the terms will have changed to deemed employment. However, I agree with the underlying premise that it would be better to move sooner, simply for the practical reason that the private sector will be receiving a lot of latecomers from the PS once these contractors realise what has happened. Also, there may be some risk of additional scrutiny on older contracts (under existing IR35 rules), but that is speculation.

[neil99]

Why? How have you jumped to the conclusion that the changes will be retrospective. Do you have anything that backs that up outside your own imagination.

Well it's an obvious question for a tax inspector to ask isn't it? There's nothing retrospective about it except that being 'out' then 'in' not because of a change in the IR35 rules per se seems an invitation for an investigation.

Perhaps one for the IR35 experts but I have a strong feeling that their advice would be.

[northernladuk]

Well it's an obvious question for a tax inspector to ask isn't it? There's nothing retrospective about it except that being 'out' then 'in' not because of a change in the IR35 rules per se seems an invitation for an investigation.

Perhaps one for the IR35 experts but I have a strong feeling that their advice would be.

What on earth are you talking about?

As I said earlier, you really shouldn't be getting involved scaremongering colleagues with so little detail. Just get your head down and get out early to pick the juicy gig's and leave them to it.

[jamesbrown]

Well it's an obvious question for a tax inspector to ask isn't it? There's nothing retrospective about it except that being 'out' then 'in' not because of a change in the IR35 rules per se seems an invitation for an investigation.

Perhaps one for the IR35 experts but I have a strong feeling that their advice would be.

Well, OK, but you're confusing scrutiny with retrospection, and we all know the success rate of HMRC w/ IR35 investigations, which is precisely why this legislation is coming forward. It's speculation that PS contractors will receive additional scrutiny on old contracts, but it's certainly possible. If they were outside, nothing in the new legislation will change this. Essentially, HMRC has accepted that they cannot address the problem (i.e. in their view) with existing legislation, so they are circumventing it to eliminate due process.

[MrMarkyMark]

Well it's an obvious question for a tax inspector to ask isn't it? There's nothing retrospective about it except that being 'out' then 'in' not because of a change in the IR35 rules per se seems an invitation for an investigation.

Perhaps one for the IR35 experts but I have a strong feeling that their advice would be.

Well, I suggest you keep your strong "feelings" to yourself and don't post them in the professional forums, please