Reply to: Confused Person Looking for Advice about Limited Company and IR35

[26hope]

A big thank you to everyone I shall sleep easier now

[eek]

and I wonder how much HMRC spent on chasing that £50 just so that they can "+1" to a statistic saying they caught someone & adding £50 to the clawback fund.

£50 a week is £2600 a year and definitely worth pursuing. If its £50 in total it probably comes down to the amount of paper work and pain HMRC inflict on their staff when an inquiry is dropped..

[AMH]

And all this so that HMRC can chase small business owners to the point of suicide for £50 a week whilst they let everyone else off 50bn a year

and I wonder how much HMRC spent on chasing that £50 just so that they can "+1" to a statistic saying they caught someone & adding £50 to the clawback fund.

[eek]

Yep apparently that's implemented

ftfy which is why it was delayed a bit....

As for source remember my comments back in November.....

[tractor]

...

You think that the two systems will in any way talk to each other???

There'll be some bloke Intern in Newport Crapita who's job is to go through the spreadsheets and put them all together get it all wrong...

FTFY

[LisaContractorUmbrella]

You think that the two systems will in any way talk to each other???

There'll be some bloke in Newport who's job is to go through the spreadsheets and put them all together...

Yep apparently that's the plan

[TheFaQQer]

Good point - I think you're probably right. Mind you, with umbrella companies reporting through RTI, HMRC will now know exactly what's paid to them by which agencies so if an agency does work with a brolly that doesn't do things quite right.......

You think that the two systems will in any way talk to each other???

There'll be some bloke in Newport who's job is to go through the spreadsheets and put them all together...

[LisaContractorUmbrella]

I suspect that the reports would be a lump less complicated if they just have a couple of preferred supplier Umbrellas involved. Got to be a lot less effort than trying to collect data from hundreds of Contractor MyCo Ltd's and god knows what else they do business with.

Good point - I think you're probably right. Mind you, with umbrella companies reporting through RTI, HMRC will now know exactly what's paid to them by which agencies so if an agency does work with a brolly that doesn't do things quite right.......

[tractor]

...

Yep they do TF - they'll have to report on umbrellas, PSC's, sole traders - in fact anyone not on their own payroll. Think in this case they agency may just have got a bit confused

Lisa is correct.

Unfortunately, reading comprehension is never any agency strong point especially where it comes to the law. REC and APSCO don't help either. The lack of case law around the mish mash of legislation they bring in makes it even worse and until someone actually takes someone else to court over some of these issues, the idiocy of the legislation will never come to light. While contractors continually cave in and there is no one to protect them over these issues, it will only get worse until they chase us all back into employment.

Lawyers love it because they can rewrite contracts annually and charge a fortune, agents don't care because we (effectively) pay the bills.

And all this so that HMRC can chase small business owners to the point of suicide for £50 a week whilst they let everyone else off 50bn a year

[TykeMerc]

Yep they do TF - they'll have to report on umbrellas, PSC's, sole traders - in fact anyone not on their own payroll. Think in this case they agency may just have got a bit confused

I suspect that the reports would be a lump less complicated if they just have a couple of preferred supplier Umbrellas involved. Got to be a lot less effort than trying to collect data from hundreds of Contractor MyCo Ltd's and god knows what else they do business with.

[LisaContractorUmbrella]

And if the agency forces everyone to use an umbrella, then they don't have to report it.

We've been assured in the past by certain organisations that this absolutely won't happen, though

Yep they do TF - they'll have to report on umbrellas, PSC's, sole traders - in fact anyone not on their own payroll. Think in this case they agency may just have got a bit confused

[TheFaQQer]

I think this will be the agency responding to the changes in the Agencies Legislation. This is HMRC's guidance on the subject https://www.gov.uk/government/upload...ITEPA_2003.pdf

HTH

And if the agency forces everyone to use an umbrella, then they don't have to report it.

We've been assured in the past by certain organisations that this absolutely won't happen, though

[ZebraSnake]

More Agency Knee-jerking!

This is because Agencies believe the agency legislation has everything to do with IR35, when it hasn't. There should be no reason why you should do this from April. It is your company and they really don't know what they are talking about.

You may find this article helpful HMRC demands more information than ever about agency contractors

[LisaContractorUmbrella]

I think this will be the agency responding to the changes in the Agencies Legislation. This is HMRC's guidance on the subject https://www.gov.uk/government/upload...ITEPA_2003.pdf

HTH

[Contreras]

Thank you all for your advice and information.

It has all been extremely useful - and is there anything I can do to resolve this issue because I like to sleep well at nights?

It would be interesting to know which agency/agent this is.

Ask them to be please be specific about why the contract is suddenly IR35 caught. Post the response here and most likely it will be confirmed as blackmailbaloney.

Generally it's a good idea to have the contract IR35 reviewed before signing. So if you failed to do this then consider it now. Make sure the reviewer is appraised of the situation. QDOS, B&C and others will do this and negotiate with the agency if need be.

Forget about going umbrella*, even it is IR35 caught. And please don't lose any sleep over it.

* actually I would see if they'll do a rate increase to compensate for going umbrella. If it's offered then accept but stay as Ltd.