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New Contract Starting 30 March 2020 ... Confused About IR35 Changes

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    New Contract Starting 30 March 2020 ... Confused About IR35 Changes

    Hi,

    I have just received a 3 month contract offer for work starting 30 March 2020 from a company I have never dealt with before.

    I was thinking about getting IPSE to review the contract, as I have with other contracts, but then I realised that after April 6 it will be the clients responsibility to determine IR35 status (as I understand it).

    There is no mention of IR35 but the contract does say that the consultant is responsible for payment of income tax, NI and any VAT liability, which I think implies outside.

    What are my responsibilities under the new rules? Do I need to do anything or is it the clients responsibility to inform me if they consider the contract inside (in which case I wouldn't take it)?

    I guess if the government decide not to roll out the IR35 changes in April (still possible?) then I would be responsible for determining IR35 status, so maybe I should get the review done anyway.

    #2
    Originally posted by Tuttle View Post
    Hi,

    I have just received a 3 month contract offer for work starting 30 March 2020 from a company I have never dealt with before.

    I was thinking about getting IPSE to review the contract, as I have with other contracts, but then I realised that after April 6 it will be the clients responsibility to determine IR35 status (as I understand it).

    There is no mention of IR35 but the contract does say that the consultant is responsible for payment of income tax, NI and any VAT liability, which I think implies outside.

    What are my responsibilities under the new rules? Do I need to do anything or is it the clients responsibility to inform me if they consider the contract inside (in which case I wouldn't take it)?

    I guess if the government decide not to roll out the IR35 changes in April (still possible?) then I would be responsible for determining IR35 status, so maybe I should get the review done anyway.
    You need to know (from the client), for certain, which status they determine the contract. No harm in asking for this determination up front, it's only a matter of 6 days before it's their responsibility to have made that determination anyway.

    There's increasing talk about the possibility of IR35 not going ahead on this forum, have I missed something? I've lost track of it the last few days has their been an update I've missed out on? Genuine question.

    Comment


      #3
      Originally posted by DevUK View Post
      You need to know (from the client), for certain, which status they determine the contract. No harm in asking for this determination up front, it's only a matter of 6 days before it's their responsibility to have made that determination anyway.

      There's increasing talk about the possibility of IR35 not going ahead on this forum, have I missed something? I've lost track of it the last few days has their been an update I've missed out on? Genuine question.
      Is there as I haven't seen it. The odds of IR35 not being implemented in the private sector on April 6th is probably 0%...
      merely at clientco for the entertainment

      Comment


        #4
        Originally posted by DevUK View Post
        You need to know (from the client), for certain, which status they determine the contract. No harm in asking for this determination up front, it's only a matter of 6 days before it's their responsibility to have made that determination anyway.

        There's increasing talk about the possibility of IR35 not going ahead on this forum, have I missed something? I've lost track of it the last few days has their been an update I've missed out on? Genuine question.
        Ok, thanks, I didn't know there were any deadlines before 6th April.

        I'm assuming the IR35 changes aren't definite until the the budget happens, I'd like to think they will be delayed or scrapped but I know that is just wishful thinking

        Comment


          #5
          Originally posted by Tuttle View Post
          Ok, thanks, I didn't know there were any deadlines before 6th April.

          I'm assuming the IR35 changes aren't definite until the the budget happens, I'd like to think they will be delayed or scrapped but I know that is just wishful thinking
          Already drafted in prep for the budget that didn't happen in November.
          200+ Govt majority

          I'd say there is a chance of it not happening so I'm going 0.01%

          Comment


            #6
            So if the IR35 changes are 99.99% likely to happen is there any point in me getting this contract reviewed or should I just be asking the client for their assessment on IR35 status?

            From a quick skim of the contract I think it could be worded better in places, I was going to get it reviewed and then ask for changes based on the review comments, but now I'm not sure that it is my responsibility any more.

            If the client decides it is outside and HMRC later decide it was inside will HMRC only go after the client or will they come after me as well?
            Last edited by Tuttle; 19 February 2020, 23:09.

            Comment


              #7
              Is the client a small company according to the definition in the Companies Act 2006?

              To qualify as a small company, at least two of the following conditions must be met.

              Annual turnover is no more than £10.2 million
              Balance sheet total is no more than £5.1 million
              No more than 50 employees.

              Comment


                #8
                Originally posted by jamesbrown View Post
                Is the client a small company according to the definition in the Companies Act 2006?
                No, it's not a small company

                Comment


                  #9
                  Originally posted by Tuttle View Post
                  No, it's not a small company
                  In that case, the responsibility lies with the client to issue an SDS, taking reasonable care, and with the Fee Payer to operate a deemed payment if the contract is inside. You have no formal responsibilities but, if the client asks for supporting information to help them with the SDS, you should provide accurate information. You have a right of appeal. All of these comments are based on draft legislation and the responsibilities and liabilities can only apply from 6 April once the legislation has been enacted and has come into effect.

                  Comment


                    #10
                    Originally posted by DevUK View Post
                    You need to know (from the client), for certain, which status they determine the contract. No harm in asking for this determination up front, it's only a matter of 6 days before it's their responsibility to have made that determination anyway.

                    There's increasing talk about the possibility of IR35 not going ahead on this forum, have I missed something? I've lost track of it the last few days has their been an update I've missed out on? Genuine question.
                    What happens if the client does not make the determination? My understanding it’s 6th April minus 45 days is this correct?


                    Sent from my iPhone using Contractor UK Forum

                    Comment

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