Client sending determination letters

[Dark Black]

Heard from another contractor at the same client today that they have received a determination letter from the client stating they are "Inside" as of April (that contractor's contract extends past April).

The client is making their determinations on a per-contract basis.

My contract was due to finish shortly but have been offered a short extension of a few weeks to see the project out. It will finish early enough to have my last invoice settled before April.

I haven't received any such letter and the client has confirmed that they won't be making any determination on my contract as it finishes before the April deadline.

Was initially a bit dubious about taking the extension in case of heightened risk if an investigation ever occurred, but having spoken to QDOS, they are of the opinion that a determination of another's contract should not in itself affect my status given we don't know the details of his contract / working practices.

I'm minded to take the short extension given the client has not made a blanket determination on status, and that they have confirmed they will not be making a determination on my current contract and extension.

Any opinions?

[northernladuk]

What do you want on opinion on? Work finishes before legislation comes in, client doesn't need to make a determination on it and it's 2 weeks.

What's the issue here?

[DevUK]

Cool, you'll be finished before you/they need to sort/decide on anything.

The other contractor should bail, but that's a different story.

[jamesbrown]

No opinion, really. The only additional risk is a small number of weeks on which your tax status might be disputed later, given that the client might not be generally onside w/r to similar contracts. The risk is already there and probably not massive (there are much riskier situations, such as the other contractor you mention). A couple of extra weeks doesn't materially change that risk.

[WordIsBond]

There's also a risk you get killed in an accident on your way to the client's office. That risk is probably higher than the risk of this being an IR35 problem.

You also might be stabbed by a terrorist on your way to their office. That risk is probably lower than the risk of this being an IR35 problem.

IMO, only, of course. No one knows.

[Dark Black]

Yeah fair enough, probably being unduly paranoid initially.

I believe the other contractor (that I know of, there's probably more) is planning to bail in good time before April.

[northernladuk]

Yeah fair enough, probably being unduly paranoid initially.

I believe the other contractor (that I know of, there's probably more) is planning to bail in good time before April.

That's what they say... Don't see much evidence of people doing that bar some on these forums though.

[Paralytic]

That's what they say... Don't see much evidence of people doing that bar some on these forums though.

I've not see much evidence of (m)any people saying they'll stay at a client who has determined them inside post April.

I've seen many suggest they will stay on where no determination is taking place and they are moving to an Umbrella.

They are very different things.

Dark Black, the only (small) risk I see for you is if this other contractor is performing the same role as you and does switch to an inside role after April.

The risk being that the outside-to-inside switch attracts the attention of HMRC, and then HMRC then look to apply an pre-April 2020 inside determination to that person and then to anyone else performing the same role pre-April 2020.

[NeedTheSunshine]

I've not see much evidence of (m)any people saying they'll stay at a client who has determined them inside post April.

I've seen many suggest they will stay on where no determination is taking place and they are moving to an Umbrella.

They are very different things.

Dark Black, the only (small) risk I see for you is if this other contractor is performing the same role as you and does switch to an inside role after April.

The risk being that the outside-to-inside switch attracts the attention of HMRC, and then HMRC then look to apply an pre-April 2020 inside determination to that person and then to anyone else performing the same role pre-April 2020.

I bet HMRC think differently. No determination and moving to umbrella but at same client equals inside all along from their point of view.

[Paralytic]

I bet HMRC think differently. No determination and moving to umbrella but at same client equals inside all along from their point of view.

HMRC may view it as the same thing if they want, but they are missing one piece of vital evidence: the SDS.

Yes, HMRC could ask the client on working practices, but they are starting from a different position to those that move from outside to inside at the same client.

So, as I said, very different things.