Hi, I couldn't find this question specifically asked before, so here goes. This question is worded according to my own circumstances but I feel it could be a common suituation for other contractors.
Since the start of the engagement, I have been conscientious to act as a supplier but as the final decision is in the hands of HMRC I would rather avoid the risk of a backdated compliance enquiry.
A slide on a recent HMRC webinar states:
HMRC will not open a new IR35 compliance enquiry for tax years before 6 April 2021 in circumstances where:
My work for my Client Co. will be completed by 31st March but they have indicated that they would like me to work with them on "phase 2" (of course I would insist on a new statement of work and it would also be subject to a new contract - and they would need to determine me Outside IR35 post April for this to be agreeable).
If I agreed to this, an SDS interview would be conducted. Client Co. has indicated that they would be "risk averse".
From a business point of view, other equally good or better opportunities for contractual work are attainable through other clients.
My question is therefore this:
I realise that HMRC's "commitment" is not legally binding so should therefore be taken with a huge grain of salt.
Since the start of the engagement, I have been conscientious to act as a supplier but as the final decision is in the hands of HMRC I would rather avoid the risk of a backdated compliance enquiry.
A slide on a recent HMRC webinar states:
HMRC will not open a new IR35 compliance enquiry for tax years before 6 April 2021 in circumstances where:
- a client decides a contract is within off-payroll working rules (IR35)
- a contractor changes the way they now work to be paid through a payroll
- a contractor ends the contract because they disagree with a client decision on status
If I agreed to this, an SDS interview would be conducted. Client Co. has indicated that they would be "risk averse".
From a business point of view, other equally good or better opportunities for contractual work are attainable through other clients.
My question is therefore this:
- If I inform Client Co. that I am not available after 31st March, then I will refuse to partake in any kind of SDS interview leading to an SDS, and there would be no requirement or incentive for Client Co. persue any such undertaking?
- If the contract ends (and no new contract is made) then none of the above bullet points explictly apply as there would not have been an SDS. I would have simply left Client Co. before the rule change.
So (taking HMRC's statement at face value) would I still be open to a compliance enquiry?
I realise that HMRC's "commitment" is not legally binding so should therefore be taken with a huge grain of salt.
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