IR35 query/Concern(Please Help)

[tarbera]

Also the end client might not be happy to see you back if you rock up for another company, having flounced off from the 1st supplier - they might tell me company they don't want you

[LisaContractorUmbrella]

Hi All,
I was a permanent employee for a consulting company XYZ and used to work for one of their client.
I have left that job as I was looking to work as a contractor.
Now I have got a contract offer for a different consultancy company (name removed to stop you getting spotted...) but their client is same and I'm working on the same project.
For the time being I'm contracting through Umbrella company but would like to set up my own limited company.
Is there any concern regarding IR35 in this case? Your help is highly appreciated.
Thanks.

<admin note>I have removed the client name in case it comes back to bite you...</admin note>

I think there could be an IR35 issue here if this is the OP's first contract since leaving permanent employment - even though the agencies/consultancies are different he's working at the same client and job spec is the same

[dk2011]

Initially looking at your issue raised. Yes there would potentially be a concern over IR35. HMRC look to see if a contractor was previously directly employed by their end user and, if so and more recently HMRC are more likely they will determine the contract is under IR35. We would have to look at the dates any potential conflicts in greater detail about your specific case.

I was never employed by the end user . Also , i'm not joining back the same company as contractor where i have worked as permanent employee.

[AndyAccountingIT]

IR35 - Advice

Hi All,
I was a permanent employee for a consulting company XYZ and used to work for one of their client.
I have left that job as I was looking to work as a contractor.
Now I have got a contract offer for a different consultancy company (name removed to stop you getting spotted...) but their client is same and I'm working on the same project.
For the time being I'm contracting through Umbrella company but would like to set up my own limited company.
Is there any concern regarding IR35 in this case? Your help is highly appreciated.
Thanks.

<admin note>I have removed the client name in case it comes back to bite you...</admin note>

Initially looking at your issue raised. Yes there would potentially be a concern over IR35. HMRC look to see if a contractor was previously directly employed by their end user and, if so and more recently HMRC are more likely they will determine the contract is under IR35. We would have to look at the dates any potential conflicts in greater detail about your specific case.

[TheFaQQer]

In this forum i was suggested to Join IPSE+ . Does that protect me for IR35 as well. Could you please advise.

Define "protect"

IPSE membership at any level will fund a tax investigation (whether that is S660, business records check, IR35...). They will not cover any fines etc. if you lose though, which is why I also have Qdos insurance.

In terms of the other benefits that you get from IPSE+ membership, I see membership as a no-brainer (even if you don't believe in the path that they are taking as an organisation).

[northernladuk]

Well kudos to QDOS. I thought they just insured every man and their dog with no risk factoring cause it's easy money.

[jamesbrown]

Hi ,
I was suggested to buy insurance from QDOS and this is what they have to say regarding my situation.
This sounds strange.
-------------------------------------------------------------------------------------------------
I’m afraid as it currently stands we would be unable to offer you the Tax Liability Cover Insurance given your end client has remained the same and we currently do not have enough information.

Ultimately, it is the connection between end client / yourself (or the limited company in the case of a contractor) that HMRC are interested in, so that the “Middleman” has changed wouldn’t make much of a difference.
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In this forum i was suggested to Join IPSE+ . Does that protect me for IR35 as well. Could you please advise.

If you're asking whether IPSE+ is an insurance product, it isn't. It will, however, provide legal support in the event of an investigation, which is, arguably, adequate protection.

FWIW (probably not much ), I don't immediately agree with QDOS, although it's their prerogative, and they do mention insufficient information. You're not working via an agency, but via a supplier, and the end-client in this case is the supplier, not their client (i.e. the client's client). That being said, IR35 is based on a hypothetical contract to begin with, so they could potentially "look through" the arrangement to define the end client as they choose (although I think this is questionable, and perhaps of questionable value too).

[dk2011]

Hi ,
I was suggested to buy insurance from QDOS and this is what they have to say regarding my situation.
This sounds strange.
-------------------------------------------------------------------------------------------------
I’m afraid as it currently stands we would be unable to offer you the Tax Liability Cover Insurance given your end client has remained the same and we currently do not have enough information.

Ultimately, it is the connection between end client / yourself (or the limited company in the case of a contractor) that HMRC are interested in, so that the “Middleman” has changed wouldn’t make much of a difference.
------------------------------------------------------------------------------------------------
In this forum i was suggested to Join IPSE+ . Does that protect me for IR35 as well. Could you please advise.

[TheFaQQer]

If a particular contract falls under IR35 , Does that mean from there onwards company will operate only under IR35 for all subsequent contract ?

No.

IR35 is assessed on a contract by contract basis. If you have concurrent contracts, it's possible to have one inside IR35 and one outside at the same time.

[TykeMerc]

Hi northernladuk , Handcuff clause isn't an issue.

Thanks for guiding me towards ipse(https://www.ipse.co.uk/member-benefits) . I'll go through the same.

One more related query . If a particular contract falls under IR35 , Does that mean from there onwards company will operate only under IR35 for all subsequent contract ?

IPSE membership isn't obligatory, there are some of us that regard the organisation as less than useful (even actively dangerous to the contractor community it claims to represent), that being said their IR35 insurance is cheap.

IR35 has factors that relate to the contract and the conduct of that contract, if the conduct of the client tends to be inside on one contract there's a fair risk it may well be on subsequent contracts.

[dk2011]

Hi northernladuk , Handcuff clause isn't an issue.

Thanks for guiding me towards ipse(https://www.ipse.co.uk/member-benefits) . I'll go through the same.

One more related query . If a particular contract falls under IR35 , Does that mean from there onwards company will operate only under IR35 for all subsequent contract ?

[northernladuk]

How long ago were you a permie? Is your handcuff clause going to be a problem or raise any eyebrows or has sufficient time passed?

As long as you get your contract reviewed, understand IR35 and don't shaft yourself through working practices, and get IPSE+ membershi then you will be as safe as anyone is IR35 wise.

[dk2011]

Many many thanks TykeMerc ! Have a nice weekend !

[TykeMerc]

Depending on contract wording and actual working practices of course I wouldn't be too worried about the IR35 position.

You're working for a different supplier in a different position, it just happens that it's the old client and project. Unless the new role and your old employed position are essentially the same it looks to be on safe ground.
I'd be far more concerned about your old employer making a fuss over non compete clauses in your old employment contract.

[dk2011]

Hi All,
I was a permanent employee for a consulting company XYZ and used to work for one of their client.
I have left that job as I was looking to work as a contractor.
Now I have got a contract offer for a different consultancy company (name removed to stop you getting spotted...) but their client is same and I'm working on the same project.
For the time being I'm contracting through Umbrella company but would like to set up my own limited company.
Is there any concern regarding IR35 in this case? Your help is highly appreciated.
Thanks.

<admin note>I have removed the client name in case it comes back to bite you...</admin note>