Options outside IR35

[Lance]

Give them call and ask? Tel - 0116 2690999.

it was an academic question. I don't care. I have plenty of outside work and have no TLC35 cover in any case.

[Fred Bloggs]

what would happen if you had TLC35 insurance based on information you'd provided.

But a QDOS assessment at the behest of the client finds you inside? Would that invalidate the insurance?

Give them call and ask? Tel - 0116 2690999.

[malvolio]

what would happen if you had TLC35 insurance based on information you'd provided.

But a QDOS assessment at the behest of the client finds you inside? Would that invalidate the insurance?

That's a good question. Since TLC35 is basically the provider insuring themselves against making a mistake, they should honour it. However the material changes in the situation brought on by the client would probably invalidate it. Catch-22...

[Lance]

maybe at the budget Sunak will announce that HMRC go after every outside to perm/brolly/inside as a policy. Watch the entire market go crazy as everyone switches (like musical chairs), and 3 months later they can crow about the 'new jobs' that have been created.

[northernladuk]

I actually think the majority of people (given the chance) will just stick at their current client, and either move to inside IRE35 or (more likely IMO) Umbrella. This will either be through ignorance of the risks it brings, trust (some would say naivety) in what HMRC have said about not using such situations to target people, fear of finding another role in what is a difficult market (in general) or just willing to take the risk.

In most cases it will be all three of them and these permatractors need a wake up call. They need to know very clearly the potential crap they are in, what is really happening and they need to pull their heads out of their arsed and think. You could argue its people like this who have got us to this point.

Im sure with hindsight if we'd been truthful and a little harsh with people that bought in to schemes the people that actually listened and got out would have been forever grateful. They might not have liked being called names but if that's what it needed to get them to think and leave they'd have been thankful for it.

IMO now isn't the time to be pandering to these type of questions from confused permatractors who don't have a clue about how contracting works and just saying 'Yeah go brolly you' ll be fine' and give them a hug.

[Paralytic]

I'm hoping there will be a big merry go round with loads of people leaving gigs they can't sustain due to expenses so there should be plenty of other inside gigs going. He leaves that one and picks one of the others up. No historic issues and he's got a secure gig going forward.

I can imagine permatractors like the OP won't like that option if they just want to bury their heads and carry on though.

I actually think the majority of people (given the chance) will just stick at their current client, and either move to inside IR35 or (more likely IMO) Umbrella. This will either be through ignorance of the risks it brings, trust (some would say naivety) in what HMRC have said about not using such situations to target people, fear of finding another role in what is a difficult market (in general) or just willing to take the risk.

[northernladuk]

Of course, NLUK is right in that you're taking a big risk in not discounting leaving. However, I'm going with the assumption that you're not in a position to leave and need the income and your corner of the market isn't flush with work.

If Qdos have assessed your role based on how it is today then you've always been inside and you need to think about putting some money aside in case it rains.

I'm hoping there will be a big merry go round with loads of people leaving gigs they can't sustain due to expenses so there should be plenty of other inside gigs going. He leaves that one and picks one of the others up. No historic issues and he's got a secure gig going forward.

I can imagine permatractors like the OP won't like that option if they just want to bury their heads and carry on though.

[northernladuk]

what would happen if you had TLC35 insurance based on information you'd provided.

But a QDOS assessment at the behest of the client finds you inside? Would that invalidate the insurance?

I'd imagine they won't be forthcoming with a statement as everyone would just cancel their insurances now if they are facing inside and QDOS won't defend it.

[ladymuck]

Umbrella if you want to divert the bulk of your pay to a pension and have no rights. You could end up paying employer's NI so you'll want a rate uplift to compensate or confirmation that someone else is paying it.

FTC if you want to have rights and a regular salary and essentially be an employee.

Of course, NLUK is right in that you're taking a big risk in not discounting leaving. However, I'm going with the assumption that you're not in a position to leave and need the income and your corner of the market isn't flush with work.

If Qdos have assessed your role based on how it is today then you've always been inside and you need to think about putting some money aside in case it rains.

[Lance]

what would happen if you had TLC35 insurance based on information you'd provided.

But a QDOS assessment at the behest of the client finds you inside? Would that invalidate the insurance?

[Fred Bloggs]

Suck it up or move on. In my experience the vast majority of agency workers are really IR35 caught all along. It was good while it lasted, wasn't it?

[northernladuk]

Why are you discounting the leaving option. It's your best option by far. Your gig has now always been inside and you know owe HMRC a lot of back tax while you were wrongly claiming to be outside.

PS. Contractors don't resign, which kinda proves QDOS's point

[nollag2006]

My main client has instructed Qdos to tell them which contractors are inside / outside IR35

They have determined that I am insider IR35 - which I am appealing, but dont hold out much hope.

My question is: other than resigning, what are the best options that I should be discussing with my end client?

Is the umbrella company route better than taking a FTC? If so, how to choose an umbrella company - is cost the only factor?