Reply to: Aren't the majority of IT contractors inside IR35?

[Moscow Mule]

mmmm...wonder if that confidentiality clause is legally binding

Who cares? So long as you don't get caught

With that level of access, you can tidy up after yourself anyway...

[Billy Pilgrim]

It should make you a healthy profit should you want to sell any case files you might discover on BN66...

Working on their document management systems too (with God access!!!!) -- mmmm...wonder if that confidentiality clause is legally binding

[Fred Bloggs]

Your IR35 deemed salary would be reduced by the value of any pension contributions - so any potential liability is therefore reduced.

Correct, that is the right answer.

[Moscow Mule]

Interestingly I'm working in an HMRC office as we speak - that should make me immune to anything shouldn't it

It should make you a healthy profit should you want to sell any case files you might discover on BN66...

[Billy Pilgrim]

Part of my anti-IR35 working practice is to try to only have short-ish duration contracts. This has been difficult in the recession since I was in a potentially long term role when the worst of the slump hit, hence sitting tight and hoping for the best. It turned out to be 18 months. My thinking is that a series of short duration jobs is far less attractive of a target to HMRC since the potential IR35 yield on each contract is small due to shortish duration. Hopefully, the workload for HMRC to investigate each contract is large relative to the potential IR35 liability due to my QDOS policy kicking in if required. Current gig is shaping up to about 6 months or so, hence following this strategy nicely. Second part of my anti-IR35 strategy is to put as much into my SIPP from the Ltd Co as possible.

Same here have rarely gone past 6 months for a contract -- but am not moving from this one till it hits the 2 year mark if I can help it....and only then if I can't get my location moved from London.....

Interestingly I'm working in an HMRC office as we speak - that should make me immune to anything shouldn't it

[TheFaQQer]

Your IR35 deemed salary would be reduced by the value of any pension contributions - so any potential liability is therefore reduced.

Thanks.

[Clare@InTouch]

Apart from leaving you with no chance to pay any bill (which I concede is irrelevant if you have the Qdos insurance) - how does that help IR35?

Your IR35 deemed salary would be reduced by the value of any pension contributions - so any potential liability is therefore reduced.

[TheFaQQer]

Second part of my anti-IR35 strategy is to put as much into my SIPP from the Ltd Co as possible.

Apart from leaving you with no chance to pay any bill (which I concede is irrelevant if you have the Qdos insurance) - how does that help IR35?

[Fred Bloggs]

Part of my anti-IR35 working practice is to try to only have short-ish duration contracts. This has been difficult in the recession since I was in a potentially long term role when the worst of the slump hit, hence sitting tight and hoping for the best. It turned out to be 18 months. My thinking is that a series of short duration jobs is far less attractive of a target to HMRC since the potential IR35 yield on each contract is small due to shortish duration. Hopefully, the workload for HMRC to investigate each contract is large relative to the potential IR35 liability due to my QDOS policy kicking in if required. Current gig is shaping up to about 6 months or so, hence following this strategy nicely. Second part of my anti-IR35 strategy is to put as much into my SIPP from the Ltd Co as possible.

[TheFaQQer]

I assume you are referring to whether these are all active contracts?

No, I am not.

I am referring to whether HMRC will look at previous contracts (with different clients) or just the current contract?

That's not actually a question, but - so am I.

[ContractIn]

Yes.

And if the client can't remember, or changes their mind about what they actually want to testify, then you may have problems. I can't remember the specific case where the client changed their minds about what they were going to say, but it has happened.

I believe that they would ask you first about it, and then if they have any further doubts (!) then they will investigate further. This would involve looking at how you actually worked.

ok cheers.

[ContractIn]

3 years on CUK and over 250 posts, but you haven't researched how IR35 works...

IR35 is assessed on a contract by contract basis - you could work on 50 contracts, 30 are inside, 20 outside. IIRC, board members of the PCG frequently have an inside and outside contract - inside for the PCG work they do, outside for their main source of income.

I assume you are referring to whether these are all active contracts? I am referring to whether HMRC will look at previous contracts (with different clients) or just the current contract?

[TheFaQQer]

Hi

Yes that is what I meant.

So if I have had 3 contracts over last 3 years with 3 different clients at different intervals and all the contracts are deemed, in writing IR35 friendly, how would they challenge a previous contract? could they contact previous clients to confirm your working arrangements?

Yes.

And if the client can't remember, or changes their mind about what they actually want to testify, then you may have problems. I can't remember the specific case where the client changed their minds about what they were going to say, but it has happened.

I believe that they would ask you first about it, and then if they have any further doubts (!) then they will investigate further. This would involve looking at how you actually worked.

[ContractIn]

I took the question to be whether they can decide previous contracts are "inside". My understanding is they can go back six years, so you need to keep details of all contracts.

Hi

Yes that is what I meant.

So if I have had 3 contracts over last 3 years with 3 different clients at different intervals and all the contracts are deemed, in writing IR35 friendly, how would they challenge a previous contract? could they contact previous clients to confirm your working arrangements?

[centurian]

And each contract needs to be assessed separately - can Hector can be arsed to do this, when the file underneath has someone that has one long running contact - maybe, maybe not

Quite a few of those caught by BN66 went into the scheme because they thought there was more safety in numbers. In fact, it turned out to be opposite, because it created a big shoal of contractors that Hector could catch with one big net instead of trying to find small little catches.