Does anyone else feel like they are being financially ripped by the tax-man

[cojak]

There's more than one contractor I know who has PM'd the build of their own new houses - to a man they are the most embedded into clients that I've seen.

Since I no longer work with the clients, I have no idea how they are taking the IR35 changes.

But I've got a fair idea...

[Manic]

J*s*s H Ch*ri*st the self entitlement is strong here. Are you having to consider selling the Lambo and reducing the school fees?

This is the new world order, adapt and survive. Have you thought about selling up and moving closer to your market?

[eek]

Ah.. that stuff he's going to lose a hell of a lot of if the worst does happen. Gotcha

But he hasn't worked out how to avoid it and is now doing things that aren't logical (a contract review when you know the clients viewpoint) because - panic

Why are you getting a contract review done. Hand your notice in and get the f**k out of there.

+1 - it's irrelevant as the client has said they wanted and have employed a temporary employee. The OPs only escape route is to leave NOW and pray that HMRC doesn't come knocking which they may not given HMRC will only really have the appropriate evidence if the OP remains working there past March.

Some money coming in now versus 25% of the last 4 years of income which equals 2 years of post 2020 taxed income - I know what I would be doing and it isn't staying..

[BrilloPad]

It's fair™

Like your moderating decisions....

[NotAllThere]

HMRC determine what is fair - and can decide so retrospectively.

It's fair™

[northernladuk]

Because - Money

Ah.. that stuff he's going to lose a hell of a lot of if the worst does happen. Gotcha

[eek]

Why are you getting a contract review done. Hand your notice in and get the f**k out of there.

Because - Money

[northernladuk]

Given all that, I would not be thinking too much on the fairness aspect of taxation etc., rather you should be seriously, and I mean it, very seriously thinking about what you are going to do for all the tax, NIs, + potentially penalties (since you did not do your due diligence by not doing any independent reviews of the contract + WPs) + interest thereof, for all of the 4 years' worth of now deemed salaries (400K+ ?), given your client, well, employer, has clearly said you were Inside IR 35 all along, when HMRC comes calling?

Your point that you did not think the contract was not going to extend beyond 3 months every single time until 4 years, is not going to cut it with anybody, let alone HMRC, unfortunately... so you need to drop that thinking / argument for good.

Also, paying for any insurance now after having received the SDS, is not going to help at the point any claim for this contract - I doubt if QDOS will even offer you the insurance for the contract, if you tell them about the 4 years saga + SDS you have now.

All very true. The OP might have had a justified rant but now turns out he's actually exactly why HMRC have done this. 3 months turned in to 4 years and you just carried on regardless. It's no wonder they think we are just disguised permies.

If I were you I'd be more concerned that you are right at the very top of HMRCs hit than complaining about all the taxes and money you are going to lose by going inside....which arguably you should done all along.

4 years in and not a hope of passing an inspection, the the client confirms it and no insurance. Jeez, they will think they've hit the jackpot.

Why are you getting a contract review done. Hand your notice in and get the f**k out of there.

[CosmicWave]

Yes, I saw a few of your posts on other threads referencing Employers NI as the main driver behind IR35. Hadn't occurred to me, but certainly does put it in perspective. I think you mentioned it was the NI team at HMRC who were the driving force behind IR35.



Unfortunately, I hadn't had any IR35 contract reviews - when I first got the gig it was only a 3 month - and it was made quite clear there was not going to be any extension - so in no way did I ever expect it to last as long as it has.

I have currently paid for a QDOS review, which I'm currently waiting to hear back from, think they are inundated at the moment.

Given all that, I would not be thinking too much on the fairness aspect of taxation etc., rather you should be seriously, and I mean it, very seriously thinking about what you are going to do for all the tax, NIs, + potentially penalties (since you did not do your due diligence by not doing any independent reviews of the contract + WPs) + interest thereof, for all of the 4 years' worth of now deemed salaries (400K+ ?), given your client, well, employer, has clearly said you were Inside IR 35 all along, when HMRC comes calling?

Your point that you did not think the contract was not going to extend beyond 3 months every single time until 4 years, is not going to cut it with anybody, let alone HMRC, unfortunately... so you need to drop that thinking / argument for good.

Also, paying for any insurance now after having received the SDS, is not going to help at the point any claim for this contract - I doubt if QDOS will even offer you the insurance for the contract, if you tell them about the 4 years saga + SDS you have now.

[GummiBear]

15% of the tax is hidden from employees - Employer NI has been increased over the years because it was just about the only thing that can be increased when a Government has said income tax, employee NI and VAT won't be changing.

And I will repeat this again Employer NI and keeping it coming in is the sole reason for this change, they don't want employers abusing it by pretending their staff are "self employed contractors".

Yes, I saw a few of your posts on other threads referencing Employers NI as the main driver behind IR35. Hadn't occurred to me, but certainly does put it in perspective. I think you mentioned it was the NI team at HMRC who were the driving force behind IR35.

You won't legimately get IR35 insurance as your client has already stated they feel you were inside.

As for closing it down that may help, it may not - I suspect it would depend on whether you stayed or not - as the question becomes would HMRC see it as Fraud. Leave and you could probably argue it wasn't, stay and I really, really wouldn't want to be the person trying to argue your outside determination prior to April 2020 wasn't...

Quick side question, did you have IR35 contract reviews for any contracts or renewals up to now?

Edit - sorry for the lack of cheery advice - it's a very large sum of money you would be arguing over...

Unfortunately, I hadn't had any IR35 contract reviews - when I first got the gig it was only a 3 month - and it was made quite clear there was not going to be any extension - so in no way did I ever expect it to last as long as it has.

I have currently paid for a QDOS review, which I'm currently waiting to hear back from, think they are inundated at the moment.