Switching to PSC from Umbrella

[fidot]

No


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Certainly true if the ltdco doesn't receive the full invoice amount, but would you care to explain why it is still no in the case where the ltdco receives the full invoice amount?

[GhostofTarbera]

Self declared inside via own ltdco is still preferable to umbrella surely?

I believe that the 5% deduction would still be valid and pension can be paid through salary sacrifice to reduce the tax burden.

No


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[northernladuk]

It's Cirrus. I wouldn't take any notice.

[Bean]

Contractors are people who perform work intended to be covered by IR35. But don't comply. That's how it's been for nearly two decades.

SNIPPED

Contractors could be as you state depending on the specific circumstances, but they can also be the following:

• Sought and engaged, due to a lack of specific skills and expertise within the client current employees.

The client may also have difficulty hiring a permanent employee at a FTE wage rate comfortable to their accounting department.
(So it is more politically-feasible to hire a 'temporary' contractor, even if they are renewed as the conditions haven't changed at the end of the original contract)

Now;
Is it the contractors' fault, that the client has still failed to source a FTE replacement, with the requisite skills and/or experience?
-No

Is it the contractors' fault, that the client may not want to source a FTE replacement, with the requisite skills and/or experience - due to legislation (redundancy etc.)?
-No

Further, should they then be punished by Hector tax-wise, for the client inability/inaction on the matter?
-No


I would agree that there are clear flags, as to IR35 status, which many contractors do not trigger - e.g. MoO, SDC, etc. - there is an argument, that those who do trigger them, should be taxed the same as FTE - but I don't recognise your 0.1% figure...


Even HMRC themselves only claim 90%** are not complying - so ask yourself;

• Why you are posting figures more harsh than HMRC?
• Why are you adding another 9.9% to HMRC firgures?
• Is it trolling?
• Is it to try and add extra emphasis to a point?
• Is it simply, that you are plucking numbers from the air?

**Source: https://parliamentlive.tv/event/inde...YAIBcDY_YlA5e0

You are of course most welcome to answer those questions differently and your post is an interesting insight into your personal thought processes, but it differs from other perspectives, including my own.

HTH

[fidot]

Self declared inside via own ltdco is still preferable to umbrella surely?

I believe that the 5% deduction would still be valid and pension can be paid through salary sacrifice to reduce the tax burden.

[Chart Accountancy]

Better still, speak to an IR35 specialist. You are on shakey ground even if it was a blanket ban. If that blanket ban was because they just wouldn't accept subs or wanted to treat you as part and parcel then nothing has changed.

We recommend to all our clients in addition to our IR35 assessment to take out an IR35 insurance because of the opinion-based nature of the legislation. HMRC can always disagree with the assessment irrespective of who has done it and this is one of the reasons for all the blanket assessments.

[Cirrus]

What is it with this place?

Contractors are people who perform work intended to be covered by IR35. But don't comply. That's how it's been for nearly two decades. Put to one side NorthernladUK's black-and-white view of life, why is everybody else fretting about whether somebody said/wrote you're in or out, gave you one contract, now giving you a different one etc etc?

All along the truth was everyone was 'in' (don't bore me with the 0.1% who are genuine businesses) but we took the risk that the Revenue would never come near us or in the extremely unlikely event they did, they stood zero chance of winning. They've won a massive victory but not by being the slightest bit cleverer in nailing people, or the slightest bit better resourced. It beggars belief they are going to waste time on all this Hercule Poirot nonsense.

They've even said they're not going to do retrospective investigations. You can count that as total lies but ask yourself why on earth would they? They're massively under-resourced, they've got tons of targets who fiddle £millions and they've tasted success by big sweeping nuclear attacks. Expect another GSK sweep but please don't lose sleep over images of flashy Powerpoint presentations a la Line of Duty followed by tooled up Revenue agents bashing down your door and shouting "IR35 - get down on the floor". Of course you take a risk but that was what contracting was all about. Don't suddenly become a bunch of snowflakes!

[Paralytic]

Your client and you clearly decided and agreed that your work was inside IR35, Hence you are currently with umbrella.

Too late with this client, you’ve already been deemed inside.

Apart from the fairly obvious that others have pointed out..

What is it with this place? Where did the OP say he had previously been deemed inside.

It really is quite simple: Someone going via an Umbrella does NOT automatically mean they are (or have been deemed) inside IR35.

OP, you need to speak to your agency who will need to speak to your client. If they will allow the switch, first read the many posts here about getting insurance and your contract and working practices reviewed before going down that route. You need to be confident you are truly outside otherwise you're just building up future issues for yourself.

However, I don't hold out much hope for your client reversing the decision if they have decided to no longer engage with PSCs - too much work for them in these uncertain times, when they know they'd have to go through it all again in 12 months.

[northernladuk]

If you were blanket assessed and your engagement is outside IR35, you can speak to your accountant to review your personal circumstances and advise you on the risks to do this with your current client. Many contractors were assessed outside IR35 but after a blanket assessment was applied were forced to go via an umbrella so it is possible to switch to your PSC if you are one of them.

Better still, speak to an IR35 specialist. You are on shakey ground even if it was a blanket ban. If that blanket ban was because they just wouldn't accept subs or wanted to treat you as part and parcel then nothing has changed.

[Chart Accountancy]

Hi All,

Now that IR35 is delayed for another year. Is it possible to switch to PSC from umbrella? So far I did not raise any invoice with umbrella as the assignment started this week.

What may be the excuses I should be prepared for with recruitment agency?

Thanks
chcontractor

If you were blanket assessed and your engagement is outside IR35, you can speak to your accountant to review your personal circumstances and advise you on the risks to do this with your current client. Many contractors were assessed outside IR35 but after a blanket assessment was applied were forced to go via an umbrella so it is possible to switch to your PSC if you are one of them.

[northernladuk]

IR35 is delayed for another year.

and just because you appear to have completely missed it...

IR35 HAS NOT BEEN DELAYED ANOTHER YEAR. IT'S STILL HERE AS IT HAS BEEN FOR 20 YEARS

[northernladuk]

Hi All,

Now that IR35 is delayed for another year. Is it possible to switch to PSC from umbrella? So far I did not raise any invoice with umbrella as the assignment started this week.

What may be the excuses I should be prepared for with recruitment agency?

Thanks
chcontractor

Apart from the fairly obvious that others have pointed out..

You do realize the steps that are involved in switching too and from? It's not just you in this chain..

[cojak]

Too late with this client, you’ve already been deemed inside.

[CosmicWave]

Hi All,

Now that IR35 is delayed for another year. Is it possible to switch to PSC from umbrella? So far I did not raise any invoice with umbrella as the assignment started this week.

What may be the excuses I should be prepared for with recruitment agency?

Thanks
chcontractor

Your client and you clearly decided and agreed that your work was inside IR35, Hence you are currently with umbrella.

What is the point of even thinking to switch, as you call it, to PSC?
Your contract and WPs are inside though.
How is it suddenly going to become outside IR35, so that you can “switch”?
Would your tax / ir35 insurance policy even protect you with these weird practices/switches?

Unless you are thinking of going through PSC and applying deemed payments systems. In that case, you are perhaps better off being with umbrella as is?

[chcontractor]

Hi All,

Now that IR35 is delayed for another year. Is it possible to switch to PSC from umbrella? So far I did not raise any invoice with umbrella as the assignment started this week.

What may be the excuses I should be prepared for with recruitment agency?

Thanks
chcontractor