Blanket IR35 Determination / "HR Policy Against PSC's"

[malvolio]

I have been offered a contract role with a client that will be determining everyone inside come April. It is also a role I have worked on in the past in a permanent capacity. If I was to join, it would be through an umbrella right from the start.

Are there any risks associated with taking up such a role that is determined inside IR35? Is there a likelihood that this determination be scaled across previous contracts?

You do despair sometimes...

An umbrella means you are an employee paying full taxes on your gross income. IR35 is not relevant in the slightest and cannot apply.

[jamesbrown]

You do despair sometimes...

An umbrella means you are an employee paying full taxes on your gross income. IR35 is not relevant in the slightest and cannot apply.

I assume they are referring to the possibility (most likely, reality) that they were a disguised employee under "previous contracts", presumably declared outside, but the phrasing is so ambiguous, it's anyone's guess...

[malvolio]

I assume they are referring to the possibility (most likely, reality) that they were a disguised employee under "previous contracts", presumably declared outside, but the phrasing is so ambiguous, it's anyone's guess...

Ah yes, that's possible. If it is the answer is that it's a vanishingly small risk . HMRC do not have infinite resources to track down old contracts on the off chance unless they suspect fraud or evasion.

[GhostofTarbera]

Lol


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[Superfly]

Yes, my question was pertaining to the possibility of opening myself up to the potential of IR35 enquiries on previous contracts if I'm determined inside in April.

My strategy is to use an umbrella and make sure that this contract and working conditions are as much inside as possible to clearly differentiate it from previous contracts.

Any other suggestions appreciated.

[GhostofTarbera]

Yes, my question was pertaining to the possibility of opening myself up to the potential of IR35 enquiries on previous contracts if I'm determined inside in April.

My strategy is to use an umbrella and make sure that this contract and working conditions are as much inside as possible to clearly differentiate it from previous contracts.

Any other suggestions appreciated.

You are bang to rights - always inside IR35


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[northernladuk]

Any other suggestions appreciated.

Learn more about Ir35.... And fast. This is your livelihood.

[jamesbrown]

Any other suggestions appreciated.

Lube?

Well, if you were doing roughly the same thing in roughly the same way, then you were probably inside on all previous contracts. However, the risk that you will get caught is probably quite low. Do you feel lucky, punk?

[BlasterBates]

Nope. There is a mandated client-led status disagreement process and a client will need to defend any proceedings against them. For example, if they don’t respond within 45 days, they become the de facto Fee Payer. The risks are not symmetric, obviously, but the only risk free option is to mandate no PSCs and that is what they will do (the sensible ones that want to avoid any risk). If taxes are withheld wrongly, the client may be liable to refund them, but they may not have them fully refunded by HMRC.

I think you'll need a little more than the "hearsay" of the agent on the phone.

I would also imagine the legal costs would be pretty enormous. I also doubt he would get very far. Do you have an example?

HMRC inspectors can march in and demand to see the records of the reviews whereas a contractor can't.

[jamesbrown]

I think you'll need a little more than the "hearsay" of the agent on the phone.

I would also imagine the legal costs would be pretty enormous. I also doubt he would get very far. Do you have an example?

HMRC inspectors can march in and demand to see the records of the reviews whereas a contractor can't.

Not sure you really understood my point.

It's quite simple.

Faff around with IR35 where you must issue an SDS in a timely way and based on reasonable care and you must bear some risk given the transfer of debt provisions in the legislation and the ability of the contractor to take remedial action (client-led status disagreement process etc.). You faff around with all of that, which is an administrative burden at best.

Or you simply implement a policy against PSC contractors.

It's blindingly obvious, isn't it?