View from Clients so far

[northernladuk]

I still think you'll be surprised. Those that don't have a clue what IR35 is or just don't care won't understand the retrospective aspect either.

[mrdonuts]

Ah, what I meant was that most of the contractors have been here a while now, so an inside IR35 decision everyone will leave just in case HMRC investigate why they deemed themselves out previously now the client has said in.

Why I said I may stay, is because if they force everyone to go umbrella, then this takes IR35 out of the equation. .

wont switching to an umbrella because of ir35 whilst staying with the same client leave you wide open to a retrospective tax attack?

[BABABlackSheep]

wont switching to an umbrella because of ir35 whilst staying with the same client leave you wide open to a retrospective tax attack?

Matters not. I’m outside now, and happy to fight the case. The problem is more if the client is lazy and blanket assesses everyone inside. Then gives HMRC more ammunition.

How does the HMRC know who you are with anyway? It’s only if they investigate you.

[northernladuk]

Matters not. I’m outside now, and happy to fight the case. The problem is more if the client is lazy and blanket assesses everyone inside. Then gives HMRC more ammunition.

How does the HMRC know who you are with anyway? It’s only if they investigate you.

Looking at the news that Glaxo contractors are being targeted it looks like they will go for a client and everyone there. Or use the old method of having a gander when something flags like problem with your returns etc.

[ladymuck]

...

How does the HMRC know who you are with anyway? It’s only if they investigate you.

I thought there was some requirement on agencies to report who is on their books and what they've paid them? Maybe someone in HMRC has started looking at the data...

EDIT: this is what I'm thinking of
Submit an employment intermediary report - GOV.UK

[ComplianceLady]

I thought there was some requirement on agencies to report who is on their books and what they've paid them? Maybe someone in HMRC has started looking at the data...

EDIT: this is what I'm thinking of
Submit an employment intermediary report - GOV.UK

Agencies reort everyone paid off payroll. So should anyone paying people off payroll (though compliance is varied for those direct).

They report individual (Name, address, NINO or Gender + DOB), PSC, value & payment vehicle.

I don't believe we report the end client (though I'd have to check) so the question for me is where they got that part of the puzzle (unless they're direct).

[ComplianceLady]

It certainly looks that way. I'm building up the war chest to see how the land lies towards the end of next year. I'm sure my current gig will declare me outside and they may even fall in the small business exemption but who knows who things will go.

For those inside there's no appetite for inside IR35 via PSC from what I've seen. It'll be PAYE direct or Umbrella (likely the latter).

[ComplianceLady]

do you have any insight into how clients intend to handle RTI and payslips for contractors declared inside IR35 from next April? Are there any signs of a mass move to umbrellas, or any other structure?

Move to umbrella I expect or via Agencies and then either direct or via umbrella. There's no appetite for clients to start payrolling that I've seen.

[cojak]

Move to umbrella I expect or via Agencies and then either direct or via umbrella. There's no appetite for clients to start payrolling that I've seen.

Many thanks for keeping us informed ComplianceLady; it's much appreciated.

[jamesbrown]

Many thanks for keeping us informed ComplianceLady; it's much appreciated.

Yup. Very useful - thanks.