so, in circumstances, say, your contract ends in February and you're fully paid up in March, your client offers you an extension but says its inside IR35 (presumably because they are risk-averse) so you turn it down. What's the likelihood this would trigger an investigation into your past contract? I mean, in this scenario, does walking away get you off the hook?
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Originally posted by oliverson View Postso, in circumstances, say, your contract ends in February and you're fully paid up in March, your client offers you an extension but says its inside IR35 (presumably because they are risk-averse) so you turn it down. What's the likelihood this would trigger an investigation into your past contract? I mean, in this scenario, does walking away get you off the hook?
But does walking away get you off the hook? No. There is the ever present danger they can open an investigation in to the old contract using the rules in place during the contract, just as they can and do right now. Nothing has changed there.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by jamesbrown View PostCool
FWIW, I don't think this would come to light until an investigation were opened and resolved, so it's probably far too early and such information is unlikely to reach the public domain.
I would always place money on the interpretation that is most strict and most literal and most beneficial to HMRC, while consistent with the law.Best Forum Adviser & Forum Personality of the Year 2018.
(No, me neither).Comment
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Originally posted by webberg View PostI agree that a literal interpretation would perhaps gather more tax, but I'm struggling with the effect that exercise would have.Comment
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Really don't think HMRC need to add people to a list that is already more than they can handle and the marginal gain for them (a few months worth of salary that may have escaped a few percentage points of tax) is not worth the resource.
I see the investigation initially being at client co level.
"You have designated all contractors born between January and June as inside IR35, but those born in the second half of the year as outside IR35. Perhaps you can explain that?"
Three/four/five/ten years later client co has to concede that actually all those born in October should be inside IR35, nice little extrapolation by HMRC and there is a few million added to the coffers.
I know I'm not cynical enough.Best Forum Adviser & Forum Personality of the Year 2018.
(No, me neither).Comment
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Originally posted by webberg View Postalready more than they can handleComment
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