Reply to: IR35 contract deemed inside

[BR14]

and stock up on loperamide.

[Cookielove]

Thanks Letterbox for your very helpful post ...much appreciated!

[LetterBox]

Hi,

I am sure this has been asked before but if my contract is now deemed to be inside as of 6 April what happens about the time I have already spent here is that deemed to be also in retrospectively?

My options are go PAYE, umbrella or leave?? No rate increase...

Agency not offering any increases.

Any advice?

Thanks

The answer is nobody knows, there is a risk, and the majority think it's not that low, for various reasons. For most it seems their current contract can be ditched to remove this particular risk, this is helped by also being offered no uplift in rates (some rates are dropping for reasons already discussed at length in other threads). So you'd need to REALLY love your situation right now to stay, as you'd ideally want to leave to remove this risk, a lower effective income certainly helps this decision.

Once you leave, you may find you're only be able to obtain this lower effective income, but at least you will have removed the risk, the logical course of action is to leave.

You could stay on (INSIDE / Umbrella etc) and mitigate the risk by explaining to the client the situation and help them define the role they would like and for them to make a determination on that. You can then control the narrative, if they say the role they have created is inside, you then have the option to accept that role INSIDE knowing that you have constructed it to be as far from your current role / WP / contract as possible / reasonable.

As we are at the end of January it may be a little late in the day for defining the new role etc (or they may just refuse), in that case if you are deemed inside, put in an appeal and leave. Else accept and take on board the risk. If there is no warchest to fall back on then do not be forced financially into taking this risk and look for another opportunity now. Pro-active wins the day.

[Paralytic]

I am taking it with a pinch of salt...I am not assured at all that it won't be retrospective if you stay at same client doing same role...

Respond to the agency saying you'll therefore presume that they'll be ok with you adding an indemnity clause to your contract, that they will take liability for any future taxes relating to the contract for the next 7 years, and see what they say.

[jamesbrown]

Five years of holiday allowance back paid as compensation?

How far back can a worker claim holiday pay where they have not taken any annual leave because it would not have been paid? | Brodies Blog

Pension entitlements will be fun too...

[ladymuck]

Five years of holiday allowance back paid as compensation?

How far back can a worker claim holiday pay where they have not taken any annual leave because it would not have been paid? | Brodies Blog

That's got much fun written all over it.

[LondonManc]

Five years of holiday allowance back paid as compensation?

How far back can a worker claim holiday pay where they have not taken any annual leave because it would not have been paid? | Brodies Blog

[madame SasGuru]

Update: Agency are saying not to worry about contract moving from outside to inside as HMRC won’t look retrospectively ??...am not convinced totally by that !! This is a big agency and they are saying don’t worry ?

If the director is willing to personally sign a deed of trust to cover the cost and losses from any tax investigation - I would accept his judgement.

Otherwise the advice is worth the paper it is written on.

[BigDataPro]

I came on here for some help/advice not to be spoken to like an idiot ...it puts new people off asking as those who deem themselves the "experts" talk down to newbies...which isn't helpful or the purpose of this website which I thought it was to offer advice, support and share knowledge as contractors...

Get used to it. You will find real good gems among those banters!

[jamesbrown]

I think we're all taking shares in salt producers

All HMRC guidance should be prefaced with a picture of the Great Salt Lake.

[ladymuck]

I am taking it with a pinch of salt...I am not assured at all that it won't be retrospective if you stay at same client doing same role...

I think we're all taking shares in salt producers

[Cookielove]

I am taking it with a pinch of salt...I am not assured at all that it won't be retrospective if you stay at same client doing same role...

[cojak]

Yep the agency doesn't care about your tax situation, they will say anything just to get you to sign on the dotted line.

[ladymuck]

Update: Agency are saying not to worry about contract moving from outside to inside as HMRC won’t look retrospectively ??...am not convinced totally by that !! This is a big agency and they are saying don’t worry ?

I had the same patter from the small consultancy I work via. The director of which has been caught up in the loan charge business, which just makes it all rather laughable that he thinks I'll be safe should ClientCo decide I'm inside.

Remember: it's not their risk to take - it's you with the target on your back (potentially) if you move from outside to inside at the same client, doing the same job.

Name and shame the agency. It helps others here know who is being sensible or not when looking for work.

[Kanaiya]

Update: Agency are saying not to worry about contract moving from outside to inside as HMRC won’t look retrospectively [emoji849][emoji848]...am not convinced totally by that !! This is a big agency and they are saying don’t worry [emoji6]

They have to o cover it or else they will lose there business.


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