Hello - does anyone know what the likelihood is for an outside IR35 contractor to be under investigation by HMRC? I am currently under contract (outside) and have a SDS and relevant clauses in my written contract, however I do not have a Statement of Work yet (although I've only just started). I was also considering taking out the insurance with Qdos around protection for IR35 investigations. But I just wanted to understand how likely it is to be investigated; has anyone been investigated here and can give some idea of how that went? Should I take out the insurance in any case? And should I have a SOW written up asap to cover myself. Thanks.
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Likeyhoodist, Frequentist or Bayesian?
First Law of Contracting: Only the strong survive -
Is this post April 2021 under the new rules?Originally posted by chris424uk View Post
If so you have nothing to worry about as all the risk is with the end client not with you.merely at clientco for the entertainmentComment
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Assuming you don't have any bad clauses in your contract that purport to transfer liability (if you do, well, oops), then this is completely irrelevant for the "new" rules, as eek says. If you do have those clauses, then you'd better check before attempting to purchase any insurance.Comment
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I should also add that if an SoW is to have any real validity it should be agreed before starting work. It is, after all, the full description of both what is needed and the various Ts&Cs (which are many and various if done properly) under which that is to happen. The idea is to prove your client is hiring a resource for a specific purpose after all...Blog? What blog...?
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Again - SoW's should be being issued but given that is the agency/end client who is now responsible for HMRC's bill if it is wrong , you can't force the client / agency to give you one, merely point out that it is in their interest to create one...Originally posted by malvolio View Postmerely at clientco for the entertainmentComment
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Well yes, kinda.... But we should be focussed on persuading end clients that they are buying a service, not hiring an office temp. If they can't formulate even a basic SoW, they should be hiring an FTC which carries less commercial risk these days. At least asking the question up front should help sharpen minds a little.Originally posted by eek View PostBlog? What blog...?Comment
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Sorry but very few IT contractors sell products or services. What they sell is their skillset on a time and materials basis for a period of time.Originally posted by malvolio View Postmerely at clientco for the entertainmentComment
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I think that argument has been effectively lost at the time the client decides you're inside IR35 (regardless of any underlying reasons the client might have).Originally posted by malvolio View PostComment
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Well that's the whole point. Sit and whine about everything being inside IR35 no matter what you do or at least start to sew the seed in the clients' minds that the risks of hiring you on an outside contract are manageable and nowhere near as severe as they currently believe. If you don't think of yourself as a service provider then you'll never be one.
And yes, thousands of contractors are not service providers, but that is because they don't care (or can't afford to care, perhaps more accurately) as long as the money is coming in and they aren't interested in widening their skill set or experience but stay in their comfort zone. That's their decision of course, but they aren't the target here, it's the ones that have something of value to the market and want to have control of their own life.
If we don't make a noise, nobody else is going to.Blog? What blog...?Comment
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