Help - IR35 has wrecked my brain

[MHPPM]

Hi all

So I was given an SDA (stating no ROS, MOE and control) from my client before Christmas, it was a generic letter not addressed to my company OR referencing the agency. The client hasn't issued this consistently, in some cases they haven't issued it and in others they have shown on a screen but not handed the letter out. I appealed which they have rejected but their reply was terrible and made no sense.

My contract runs out on 9th Feb so I was just going to let it run out. They know want to extend me on the same contract (which is IR35 compliant) for a few weeks then change to a new contract - which I presume is Inside.

I kinda would like to eek out a few more weeks but I don't intend to move from Outside to Inside.

Any advice?

Thanks

[jamesbrown]

A Status Determination Statement (SDS) will become a legal requirement only on 6 April, assuming the legislation is enacted. For now, you can treat that note from the client as a scribble (an SDS will need to be addressed to you, take reasonable care and give reasons), but that doesn’t mean it’s inconsequential. It sounds as though they consider your current contract to be inside. At this point, you can’t do much about that except to collect and retain evidence to the contrary, such as a contract review and evidence that your working practices are outside. Going forward, if you do extend for a few more weeks, bear in mind that payments made on or after 6 April will be treated under the new regime, so you should make sure that any payments on your existing/extended terms are made by April 3.

[MHPPM]

Extending on Same Terms

Thanks for the info. My concern in the short term is accepting a contract extension on the current terms is accepting that I am inside. Would you agree with this?

[jamesbrown]

Thanks for the info. My concern in the short term is accepting a contract extension on the current terms is accepting that I am inside. Would you agree with this?

That ship has sailed in the sense that you’re currently working under those terms. So either you need to accept that, both in the past and going forward, or (I suggest) you need to evidence your current status, and hence ongoing status (before any new terms), as outside. There is no additional risk from continuing beyond the additional time/tax exposure if you’re wrong. There would be additional risk if you formally went from outside to inside without a change in working practices, but you aren’t proposing that. Again, the problem has already been created, so anything you do now is just mitigation and risk management.

[LondonManc]

Thanks for the info. My concern in the short term is accepting a contract extension on the current terms is accepting that I am inside. Would you agree with this?

I agree that you should be concerned. I would be reluctant to sign anything without QDOS reviewing it.

Do you rely on your Limited Company to offset significant expenses against? If so, that won't happen if your contract is inside.

With reports of retrospective review now happening in the public sector, I'd be reluctant to accept a contract that switches; I'd want significantly different contracts with different statements of working practices; either that or consider going perm if it's an option for you or simply walking away at the end of the current deal; if they really want you to stay, they'll sort something out in your favour.

[MHPPM]

That ship has sailed in the sense that you’re currently working under those terms. So either you need to accept that, both in the past and going forward, or (I suggest) you need to evidence your current status, and hence ongoing status (before any new terms), as outside. There is no additional risk from continuing beyond the additional time/tax exposure if you’re wrong. There would be additional risk if you formally went from outside to inside without a change in working practices, but you aren’t proposing that. Again, the problem has already been created, so anything you do now is just mitigation and risk management.

My contract is clearly outside - the extension would be on the same contract. The challenge is they think I am inside (or the role is) so does this weaken my argument in the future were I to be investigated? If I leave now I can say I disagreed with the SDA (even though it's a rubbish version) and refused to stay.

[MHPPM]

I agree that you should be concerned. I would be reluctant to sign anything without QDOS reviewing it.

Do you rely on your Limited Company to offset significant expenses against? If so, that won't happen if your contract is inside.

With reports of retrospective review now happening in the public sector, I'd be reluctant to accept a contract that switches; I'd want significantly different contracts with different statements of working practices; either that or consider going perm if it's an option for you or simply walking away at the end of the current deal; if they really want you to stay, they'll sort something out in your favour.

Thanks, QDOS would just be reviewing a contract they have already passed as Compliant. I hear they are planning a new contract that works before and after 6th April - not sure how they will pull that trick!!

[Hertsseasider]

Pretty much in the same boat but have not yet received confirmation of the Clients IR35 review (99% sure to be inside). Contract runs out 28/2/20. Client suggesting another Contract role leading to possible Perm position on greatly reduced income. And I'd have to apply
I'm walking. Need some time out, decent warchest and Mrs HS on a decent salary. Will let the dust settle and take it from there.
I realise not everyone can take such a route but if possible consider it as an option

[MHPPM]

Pretty much in the same boat but have not yet received confirmation of the Clients IR35 review (99% sure to be inside). Contract runs out 28/2/20. Client suggesting another Contract role leading to possible Perm position on greatly reduced income. And I'd have to apply
I'm walking. Need some time out, decent warchest and Mrs HS on a decent salary. Will let the dust settle and take it from there.
I realise not everyone can take such a route but if possible consider it as an option

My Mrs doesn't work

However got a bit put by so maybe that is the best option. This is an omni shambles, eh?

[jamesbrown]

Thanks, QDOS would just be reviewing a contract they have already passed as Compliant. I hear they are planning a new contract that works before and after 6th April - not sure how they will pull that trick!!

Just retain that alongside as much physical evidence of your working practices that support it. It sounds like the client has issued a Mickey Mouse opinion that doesn’t address your working practices. Obviously, you should assume that your client would not be on your side under investigation, which is a not a trivial risk, but the reality matters more, so document it. Then plan to reject any extension under different terms and ensure you are paid by 3 April for any work under the existing terms.