Outside IR35 to a perm...best timing

[malvolio]

sorry to keep boring you... so to clarify, there is no difference at what moment to go perm? I hate perm jobs...but bills need to be paid

Not quite. You're OK as long as your last payment as a contractor is cleared before April 5th.

[trailfinder09]

thanks everyone for the input!

[GhostofTarbera]

Not quite. You're OK as long as your last payment as a contractor is cleared before April 5th.

Most agencies pay via BACS thus it has to clear by the 3rd April (4th/5th are weekend and non BACS calendar days)


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[SimonMac]

Here's one for you!

I put an invoice in on the 28th Feb, which is the last day of MyCo's financial year so is included in this years books, to paid after the 6th April.

Technically I could be charged CT & VAT on this invoice but the invoice be ultimately paid PAYE (of course this would only be a problem if your accounts are done on receipt of payment not invoice generation)

[sira]

My agency was very helpful, they confirmed my final pay for March will be paid on 3rd April.

[JamesBrown11]

My agency was very helpful, they confirmed my final pay for March will be paid on 3rd April.

I wouldn't take such risk. What if the payment doesn't clear on the same day, or if the agency turns out to have cashflow problems, etc etc?

[Kanaiya]

HMRC don't have the resources to chase down every edge case .

I am sure HMRC system is smart enough to evaluate whats changed and filter and trigger backdate. I cant believe HMRC system is so old that they have to manually go through each and every case to identify contractors who fall under IR35.

[malvolio]

I am sure HMRC system is smart enough to evaluate whats changed and filter and trigger backdate. I cant believe HMRC system is so old that they have to manually go through each and every case to identify contractors who fall under IR35.

No, they use their iXBRL-enabled data to match up company and personal accounts with the RTI data and look for anomalies. But that doesn't mean they have hundreds of qualified inspectors just sat waiting to leap on every case; they will most likely take a random sample.

So one way to keep under the radar is to follow the rules scrupulously...

[Peoplesoft bloke]

But that doesn't mean they have hundreds of qualified inspectors just sat waiting to leap on every case; they will most likely take a random sample.

Or send a nudge letter to every match on their list per GSK?

[Kanaiya]

No, they use their iXBRL-enabled data to match up company and personal accounts with the RTI data and look for anomalies. But that doesn't mean they have hundreds of qualified inspectors just sat waiting to leap on every case; they will most likely take a random sample.

So one way to keep under the radar is to follow the rules scrupulously...

No disrespect. But I believe HMRC must have upgraded there system to trigger the letter on click of the button.