RBS, contractors and IR35

[northernladuk]

I think JTB has been hacked.

[JohntheBike]

I think JTB has been hacked.

how come?

you've been quiet considering that some of these posts are discussing issues which you wouldn't necessarily agree with.

[SussexSeagull]

So in summary we are broadly in agreement that we don't really know what is going to happen?

[JohntheBike]

So in summary we are broadly in agreement that we don't really know what is going to happen?

absolutely, we'll have a better idea after the 11th of July when HMG replies to the consultation.

[webberg]

I think some valid points there.

End clients putting everybody "inside" IR35 will run a risk of them claiming employment benefits and any case going to Tribunal may pray in aid the tax decision.

Whilst I remain sceptical of the links and the weight such an argument may have on an Employment Tribunal, I can see merit in it.

End clients putting the majority of their contractors "outside" IR35 will call attention to themselves from HMRC and their contractors may be at higher risk of status enquiry.

[jamesbrown]

I don't think clients will seek to put a lot of BoS contractors "inside" IR35 per se (partly for the reasons alluded to above, because it doesn't eliminate the risk of miss-classification either way). Rather, they will seek to push them to umbrellas or FTCs or some other temp type employment contract.

[JohntheBike]

I don't think clients will seek to put a lot of BoS contractors "inside" IR35 per se (partly for the reasons alluded to above, because it doesn't eliminate the risk of miss-classification either way). Rather, they will seek to push them to umbrellas or FTCs or some other temp type employment contract.

I haven't followed the debate on FTC's and I'm not sure how other structures work. Can you elaborate on the implications of each of these structures with regards to any status issues?

[Barry Badrinath]

Let's say RBS put all contractors 'inside' from April 1st and a number just suck it up carrying out same role. Does that give HMRC licence to investigate and claw back all the NICs etc they haven't been paying for how long they've been outside ir35 with RBS with in that role?

[jamesbrown]

I haven't followed the debate on FTC's and I'm not sure how other structures work. Can you elaborate on the implications of each of these structures with regards to any status issues?

An FTC is a shorthand for a fixed term contract of employment. So it's full PAYE and full employment benefits, albeit for a fixed period (e.g., 6 months). This is pretty common in universities, for example, who employ staff for short periods that are funded by a research grant. Perhaps the latter is an indication of where things could go, i.e., a large number of relatively skilled staff on short term employment contracts, although that does come with unions and all the other stuff that comes with employment, so it isn't a cost free option. An umbrella is also an employment of sorts, only you are employed by the umbrella company. Again, it's full PAYE.

[JohntheBike]

An FTC is a shorthand for a fixed term contract of employment. So it's full PAYE and full employment benefits, albeit for a fixed period (e.g., 6 months). This is pretty common in universities, for example, who employ staff for short periods that are funded by a research grant. Perhaps the latter is an indication of where things could go, i.e., a large number of relatively skilled staff on short term employment contracts, although that does come with unions and all the other stuff that comes with employment, so it isn't a cost free option. An umbrella is also an employment of sorts, only you are employed by the umbrella company. Again, it's full PAYE.

thanks for that. I guess the attractiveness or viability of any of these structures will depend on the remuneration in relation to what contractors expect and what the market provides. Given that both contract states post April 2020 carry some risk, I'm guessing that clients will still want to distance themselves from any risks and perhaps make more use of such structures. It remains to be seen if any other organisations will want to shoulder those risks.