Anglo American - outside to inside

[Highland]

Similar happened to me, although not with AA and a bit longer - May 20 to Feb 21. Client issues SDS out of nowhere for the engagement without any prior consultation. Wouldn’t entertain anything supplied to support appeal. Post April client implementing a full ban on Ltd Cos so seemed like a waste of their time to me.

I decided to have my accountant revisit the revenue from the contract, treat it as caught and stumped up the extra tax. Minimal expenses and hadn’t taken much out of the business during the year up to that point so had plenty set aside. I had QDos review the contract prior to starting and working practices compliant (my biased interpretation) but if you know the client has the inside SDS in their pocket should HMRC ever ask them, I didn’t see much scope of successfully contesting an investigation - although unlikely.

I am a risk averse wimp who values the ability to sleep soundly though. I can always earn more money.

[eek]

Similar happened to me, although not with AA and a bit longer - May 20 to Feb 21. Client issues SDS out of nowhere for the engagement without any prior consultation. Wouldn’t entertain anything supplied to support appeal. Post April client implementing a full ban on Ltd Cos so seemed like a waste of their time to me.

I decided to have my accountant revisit the revenue from the contract, treat it as caught and stumped up the extra tax. Minimal expenses and hadn’t taken much out of the business during the year up to that point so had plenty set aside. I had QDos review the contract prior to starting and working practices compliant (my biased interpretation) but if you know the client has the inside SDS in their pocket should HMRC ever ask them, I didn’t see much scope of successfully contesting an investigation - although unlikely.

I am a risk averse wimp who values the ability to sleep soundly though. I can always earn more money.

Issuing an SDS determination when the client is implementing a ban on PSCs would be just about the only thing that would have me serving immediate notice on the client.

If they are stupid enough to do things like that I would want to be as far away from them as possible - which I note from your leaving date seems to have been your approach as well.

[Paralytic]

Thanks for your advice.
If i do stay on...
In the unlikely scenario i am required to pay back-dated tax for the Dec 2020-End of March 2021 "outside ltd" work, is there a fast to calculate how much funds i should put aside pls? Thanks

Just stick your details into one of the many Umbrella online pay illustrations, and they should tell you what tax & NI you would have paid had you been PAYE for those months.

HMRC have said they won't target people who go from outside to inside at the same client, but few believe them. I'd set some funds aside, and see it as a nest egg. After a few years, you may consider the risk has reduced enough that you can treat yourself.

[Highland]

Issuing an SDS determination when the client is implementing a ban on PSCs would be just about the only thing that would have me serving immediate notice on the client.

If they are stupid enough to do things like that I would want to be as far away from them as possible - which I note from your leaving date seems to have been your approach as well.

Client had offered a PAYE FTC to end of 2021. I was on the cusp of signing but that went into the bin when the SDS appeared. Contract ends at the end of March so seeing it out as inside IR35 and then have another place to go to.

Net effect c. £20k extra tax paid versus original plan - although that doesn't take into account any future tax there would have been on dividends / other future profit extraction methods.

C'est la vie - the rate was good.