I was going to hand in my notice but I need to bounce my thoughts - Outside to Inside

[ChimpMaster]

Guys

Brain is fried. ER, IR35, Loan Charge, Covid.

Apologies if this has already been elsewhere on the forum but I'm writing out my notice letter to the client at this moment, and having doubts.

I am outside IR35 for now - CEST and QDOS both agree and I have used a substitute for a short while in the past. Actual working arrangements point to outside IR35, so no issues there.

Come April 2020 : if the client says no more PSCs then I was going to quit on April 3rd to avoid any chance of retro action. But now I am thinking I can continue under an Umbrella, because previous contracts at this client are outside IR35.

There is no other work out there for me, so it would beneficial if I could continue contracting here.

I know we don't have a definitive answer but what are your thoughts on : if forced to, do I continue this contract but now under an Umbrella - and is my previous outside-IR35 status safe in this situation?

[northernladuk]

Guys

Brain is fried. ER, IR35, Loan Charge, Covid.

Apologies if this has already been elsewhere on the forum but I'm writing out my notice letter to the client at this moment, and having doubts.

I am outside IR35 for now - CEST and QDOS both agree and I have used a substitute for a short while in the past. Actual working arrangements point to outside IR35, so no issues there.

Come April 2020 : if the client says no more PSCs then I was going to quit on April 3rd to avoid any chance of retro action. But now I am thinking I can continue under an Umbrella, because previous contracts at this client are outside IR35.

There is no other work out there for me, so it would beneficial if I could continue contracting here.

I know we don't have a definitive answer but what are your thoughts on : if forced to, do I continue this contract but now under an Umbrella - and is my previous outside-IR35 status safe in this situation?

It's not safe from an investigation no.

https://www.contractoruk.com/forums/...tigations.html

If you get investigated will you win? Probably yes, particularly if you've used a sub.

How many years are we talking here?

[BrilloPad]

It's not safe from an investigation no.

https://www.contractoruk.com/forums/...tigations.html

If you get investigated will you win? Probably yes, particularly if you've used a sub.

How many years are we talking here?

Assuming you can afford to fight HMRC. IR35 insurance helps...

[ChimpMaster]

I should have said, if it makes a difference, that I am direct to the client. There is no agency involved and hence no intermediary reporting of my contract to HMRC.

[northernladuk]

I should have said, if it makes a difference, that I am direct to the client. There is no agency involved and hence no intermediary reporting of my contract to HMRC.

Chimp chimp chimp

[ChimpMaster]

Chimp chimp chimp

Like I said, brain fried.

Removal of ER is going to knock me for a big sum, and there's no other work out there for me.

Scary times.

[GhostofTarbera]

I would continue under umbrella if I were you, like 95% of people at the big banks - but they don’t have the use of a substitute in there back pocket you do !!

Remember you will only get 57 % ish into you tour bank account from your gross rate now


Sent from my iPhone using Contractor UK Forum

[malvolio]

Even if you're staying, get a whole new contract, including commitments on control, non-substitution and mutuality, ,plus holidays and pensions rights. Not doing so is a tacit admission that your previous outside-IR35 one was a sham.

And I assume you know that expenses will be history...

[ChimpMaster]

Even if you're staying, get a whole new contract, including commitments on control, non-substitution and mutuality, ,plus holidays and pensions rights. Not doing so is a tacit admission that your previous outside-IR35 one was a sham.

And I assume you know that expenses will be history...

Good idea on the new contract. So basically make it look like I am an employee as far as possible.

Expenses aren't relevant in my case: I work at my home office 100% and only visit client sites maybe every 2 or 3 months (2 offices, not that far).

[rambaugh]

If you suspect a risk of being assessed inside IR35 would it not be prudent to serve notice on current contract so you avoid a formal assessment which could be stain on your record should HMRC ever come looking. This would also avoid potentially quarreling with your client if they assessed you as inside IR35 but you disagreed which could damage the relationship you have.

You can then negotiate a new contract with your client that is more informed than your previous contract of imminent IR35 laws that come in to force from April 5. If they need your skills I'm sure they will be open to finding a way that they can continue to work with you.