Not yet happened really, just for the discussion sake.
Private sector client in scope of the reform, direct contract with contractor's Ltd, usual outside T&M contract. Both contractor and client carry on after 6th of Apr 21, no determination made, client continue to pay as if contract is outside IR35. They forgot, they did not cared or client have changed their mind for example.
In June, client client finally pulls it out and making contract determination which comes back as 'Inside'. Where it leaves contractor?
1. I believe that client will not be able to ask contractor to repay you some money to cover their newly arisen tax liability for past 3 months as that would be breach of contract between parties, however maybe there are other thoughts.
2. Whole contract is now Inside, so if contractor will stay on Inside basis, that will mean they exposed as their previous term was also inside, but even if he leave, that will make his previous Outside determination quite weak as client is thinking otherwise.
What do you reckon is probability of such U-turn in a middle of a contract and it's impact on a contractor?
Private sector client in scope of the reform, direct contract with contractor's Ltd, usual outside T&M contract. Both contractor and client carry on after 6th of Apr 21, no determination made, client continue to pay as if contract is outside IR35. They forgot, they did not cared or client have changed their mind for example.
In June, client client finally pulls it out and making contract determination which comes back as 'Inside'. Where it leaves contractor?
1. I believe that client will not be able to ask contractor to repay you some money to cover their newly arisen tax liability for past 3 months as that would be breach of contract between parties, however maybe there are other thoughts.
2. Whole contract is now Inside, so if contractor will stay on Inside basis, that will mean they exposed as their previous term was also inside, but even if he leave, that will make his previous Outside determination quite weak as client is thinking otherwise.
What do you reckon is probability of such U-turn in a middle of a contract and it's impact on a contractor?
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