IR35 Disputes and the 45 day rule.

[eatenrifles]

Long story short, client blanket assessed all contractors inside IR35. I put my dispute in writing stating contractual terms and working practices that put me outside, also quoted case law to back up my points as much as possible.

Under the legislation, the client must respond within 45 days otherwise the responsibility for tax falls back on them.

April 2020 changes to off-payroll working for clients - GOV.UK

You must provide a response within 45 days of receiving notification that the worker or agency disagrees with your employment status determination. During this time you should continue to apply the rules in line with your original determination.

Tell the worker if the determination has not changed.

Tell the fee-payer and the worker if the determination has changed.

Failure to respond within 45 days will result in the worker’s tax and National Insurance contributions becoming your responsibility.

Today is the 45th day since my dispute was confirmed as received. In typical wooly fashion, HMRC's guidance doesn't make it clear whether it's 45 working days or calendar days.

Any opinions? I'm thinking it's unlikely this will make a scrap of difference as they've pretty much ignored the legislation in terms of taking 'reasonable care' in making the assessments.

Currently at the stage of having two other contract offers; one offshore client through a UK agency that is a small company (so IR35 decision rests with me?) and one with a UK client, through a UK agency where the client hasn't assessed its contractors yet (not a great sign, I know).

[jamesbrown]

The legislation doesn’t even exist yet. It’s a draft, not enacted.

[eatenrifles]

The legislation doesn’t even exist yet. It’s a draft, not enacted.

So they'll need to issue an official SDS after April 6th and then I dispute it (again) and then wait 45 days (again) and if they don't respond the responsibility is back on them...

In the meantime, I've put myself in an outside to inside at the same client scenario.

Better chase up the details on those other options I guess.

[jamesbrown]

So they'll need to issue an official SDS after April 6th and then I dispute it (again) and then wait 45 days (again) and if they don't respond the responsibility is back on them...

In the meantime, I've put myself in an outside to inside at the same client scenario.

Better chase up the details on those other options I guess.

Right. The transition is going to be a farce. The effective date of any legislation will be April 6 and it will apply to payments made on or after this date, not just work completed.

[eatenrifles]

The effective date of any legislation will be April 6 and it will apply to payments made on or after this date, not just work completed.

Currently battling with my agency about this. Face to face, they suggested they would pull out all the stops to make sure everyone was paid for all work completed pre-April 6th (two week billing cycle ends on April 3rd) but by email they seem to be suggesting that we'll have to suck up the deductions.

[jamesbrown]

Currently battling with my agency about this. Face to face, they suggested they would pull out all the stops to make sure everyone was paid for all work completed pre-April 6th (two week billing cycle ends on April 3rd) but by email they seem to be suggesting that we'll have to suck up the deductions.

Personally, I wouldn’t accept that. It isn’t just the deductions, but the formal record it creates. What is your contractual notice period?

[eatenrifles]

Personally, I wouldn’t accept that. It isn’t just the deductions, but the formal record it creates. What is your contractual notice period?

Four weeks. I still have enough time to get out before the manure hits the air conditioning.

In fact the contract itself ends March 31st but an extension will be offered. Or rather, the existing contract will be terminated and a new 'inside' contract will be offered.

[jamesbrown]

Four weeks. I still have enough time to get out before the manure hits the air conditioning.

In fact the contract itself ends March 31st but an extension will be offered. Or rather, the existing contract will be terminated and a new 'inside' contract will be offered.

Sucks, but you have to protect yourself, based on your own attitude to risk. Client/agent are burning bridges, not you.