Assessed as Inside from April or a Blanket Ban - it's time to leave

[northernladuk]

If going outside to inside, irrespective of the client (existing or new) you should not use the same agency (who report to HMRC) if you want to avoid risk of retro checks.

It will never avoid the risk of reto checks. It will reduce the risk of getting found and then losing.

Important to not underplay this risk.

[CompoundOverload]

It will never avoid the risk of reto checks. It will reduce the risk of getting found and then losing.

Important to not underplay this risk.

Agreed - Avoid should have been "reduce"

[ScottW]

Mulling in over....

Thanks for everybody's input.

Interesting to read everybody’s takes on it.

Still waiting for Clients approach.

....... but having read comments here, unless Client comes up with something which guarantees last 2.5 years cannot be got at by the vile HMRC .... then the decision is made.

I’m outta there come April .... Just not worth the retrospective tax risk.

[northernladuk]

Thanks for everybody's input.

Interesting to read everybody’s takes on it.

Still waiting for Clients approach.

....... but having read comments here, unless Client comes up with something which guarantees last 2.5 years cannot be got at by the vile HMRC .... then the decision is made.

I’m outta there come April .... Just not worth the retrospective tax risk.

Which they never will. The past determinations are absolutely nothing to so with the client.

[dsc]

Thanks for everybody's input.

Interesting to read everybody’s takes on it.

Still waiting for Clients approach.

....... but having read comments here, unless Client comes up with something which guarantees last 2.5 years cannot be got at by the vile HMRC .... then the decision is made.

I’m outta there come April .... Just not worth the retrospective tax risk.

If you get an outside determination then you can stay, no guarantee that HMRC won't come after you, but that was always there. At least you won't have to answer any awkward questions like "so you say you were outside all this time and now suddenly your client says you are inside? Interesting...".

[CompoundOverload]

If you get an outside determination then you can stay, no guarantee that HMRC won't come after you, but that was always there. At least you won't have to answer any awkward questions like "so you say you were outside all this time and now suddenly your client says you are inside? Interesting...".

This would be the only time I would be confident taking them head on.

Letter arrives - simply respond back by showing them the client SDS and as a Brucie bonus the fact you also have IR35 tax insurance too.

[dsc]

Well it can also backfire, say they go after the client first saying they determined your role incorrectly, client caves in as doesn't want the hassle of fighting HMRC and it's not a massive bill anyway assuming it happens a few months from now. Then they come after you, you tell them you've been assessed outside by your client, they say it was a mistake, client admitted it and so this means you were always inside, so they go through your previous engagements and so on.

No wonder people are closing down ltds as there's no guarantees in any scenario.

[CompoundOverload]

Well it can also backfire, say they go after the client first saying they determined your role incorrectly, client caves in as doesn't want the hassle of fighting HMRC and it's not a massive bill anyway assuming it happens a few months from now. Then they come after you, you tell them you've been assessed outside by your client, they say it was a mistake, client admitted it and so this means you were always inside, so they go through your previous engagements and so on.

No wonder people are closing down ltds as there's no guarantees in any scenario.

So even if you have a written SDS from the client and have a new contract issued on this basis and you're only engaging them due to this SDS confirmation, they can still welsh it and you're liable - YIKES!

So there literally is no comfort blankets here at all. So what is the point of having a written SDS if they can refute it?

Makes a mockery of the whole thing. Then if that is the case, why did all these firms blanket ban contractors (PSC), why wouldn't they just say everyone is outside and if they ever got an inquiry from the revenue, just say you got it wrong and push the liability back on the contractor?

[dsc]

It's just a scenario that might happen, some / most will probably stick to their assessment, but I can see how they would bail the moment HMRC comes knocking. And it's not like they are dropping you in it, they are still responsible for anything April onwards, it's just that if they do bail, it opens you up to an investigation as HMRC can turn around and say "well now that we know you are currently inside and not much has changed since pre-April, we shall have a look at your end as well".

IR35 has been in place for ages, it's just that previously every single contractor was deeming themselves outside and there was no extra info on whether it's correct or not (so you had to open up an investigation and argue that it's incorrect). Now that the client is responsible for the determination, it's the extra bit of info that HMRC can use to flag up potential incorrect assessments done by contractors themselves and use any client inside determination as ammo against contractors.

[Andy2]

all the contractors i know are moving from outside to inside with the same client and same role
they have no idea they can be target for retrospective tax.