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IR35 and remote working

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    IR35 and remote working

    Hi All,

    Have found many threads on the forum useful in the past, but now I'm struggling to find an answer to my question, so time for post number 1.

    Many thanks, Whitelime.
    Last edited by Whitelime; 15 May 2021, 00:21.

    #2
    If the contract is one of employment, then my understanding is that you have to treat it as an IR35 contract and account for ernic, if the contract is with a non-UK based company with no presence in the UK.
    Down with racism. Long live miscegenation!

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      #3
      ..
      Last edited by Whitelime; 15 May 2021, 00:19.

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        #4
        Originally posted by NotAllThere View Post
        If the contract is one of employment, then my understanding is that you have to treat it as an IR35 contract and account for ernic, if the contract is with a non-UK based company
        Nope it will depend on the size of the UK branch and whether the branch is very small or meets the large/ medium company criteria
        merely at clientco for the entertainment

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          #5
          ..
          Last edited by Whitelime; 15 May 2021, 00:20.

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            #6
            To correct one misunderstanding, IR35 always applies insofar as some person/company needs to consider it. Whether the responsibility and liability belongs to YourCo (ITEPA chapter 8) or a company above you in the supply chain (ITEPA chapter 10) depends on the nature of the supply chain.

            As eek suggests, since your supply chain is not fully overseas, whether there is a responsibility and liability above YourCo will depend on whether the UK connection is small (Companies Act definition). Good luck getting a response from your supply chain about that

            Belt and braces. Assume the responsibility and liability belongs to YourCo and get your contract reviewed as normal (as before April 6 2021). If it doesn't belong to YourCo, it won't be your fault, and the supply chain above you will, er, regret it.


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              #7
              Hi James,

              Thanks for your reply.

              Whitelime.
              Last edited by Whitelime; 15 May 2021, 00:20.

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                #8
                Originally posted by Whitelime View Post

                Hi All,

                Apologies - I am replying, but it seems all my posts need to be approved by a Mod. Not sure which order they'll be displayed in once they are approved



                Hi James,

                Thanks for your reply. As mentioned in a previous (yet to be approved) post, the UK branch of the end client has far more than 50 employees, so I don't believe it's small.

                I'm quite sure a contract review would determine outside IR35, but a working practices review would probably be inside IR35. If I'm understanding correctly, this means all the risk would be with the end client? What a predicament.... alienating this particular end client if things went south wouldn't be a good move in my niche area....

                Whitelime.
                It's the working practices that matter.

                Yes, the risk would be with the UK connection, which carries the liability. The overseas client would be responsible for the SDS.

                The maximum you could do would be to try and make the end client aware of the risks. If they don't ignore you outright (quite likely), they will probably use that knowledge to adopt a risk averse posture and issue an SDS that indicates the working practices to be inside, so it's a double-edged sword.

                As things stand, the supply chain above you is non-compliant and the UK connection is exposed to a significant risk that they probably know nothing about (but then, that's part of the purpose of the reform - to have the supply chain police itself).

                You are also now aware of their probable non-compliance and you have a choice to make about what to do next. If they fail to listen or issue an SDS, just make sure you take a belt and braces approach and assume the risk is with YourCo (probably not a bad idea anyway, given the complexity).

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                  #9
                  Thanks again James,

                  Whitelime.
                  Last edited by Whitelime; 15 May 2021, 00:22.

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                    #10
                    Originally posted by Whitelime View Post

                    Thanks again James,

                    So assuming the risk is in fact with MyCO, maximum pension contributions and then full PAYE on the rest would be the most-palatable safe option?

                    Whitelime.
                    It depends what the professional review of your contract and working practices says. If it says that your contract is inside, then you'll need to operate a deemed payment. If it doesn't, then it's business as usual.

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