All these options have been discussed many time recently as many contractors are in the same position. With only 6 weeks till it hits they are a bit ahead of the game.
Trawl the IR35 Reform section. Not only will you find the answers to your question but you'll find a ton of other info that will be useful going forward.
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IR35 - what to do next / is it worth shutting current company down?
Looking for some guidance on what other contractors would do in this situation..
My hirer is currently using the CEST tool to make determinations (results due in the next few weeks) but their HR team told internal managers even before they started that "most" contractors would be found to be inside. The determinations aren't being made with reference to contracts or deliverables so it looks to me like they are just going through the motions.
All of the contracts (low hundreds) end at the end of March. The hirer seems to be assuming most contractors will accept PAYE contracts from April but on a reduced day rate - with the contractors funding employer NI etc.
Whether to take that or not is a decision for individual contracts but I'm personally very mindful of the risk of being found "inside" and then staying with the hirer. I've discussed with my end client the high risk of HMRC undertaking retrospective investigations and the risk to me of going from contract to PAYE, FTC or Perm. My end client is very keen for me to remain - we're half way through a massive programme of work and I'm seen to be one of the strongest contractors from a delivery perspective.
My preference is to continue to work off payroll but it looks like that will be difficult for the next 3-6 months until the market settles down again. So my options are:
1. Finish with current hirer and look for another contract off payroll from April. For my skillset there's not much work around and a huge level of competition for the work that is around.
2. Lose the argument with the hirer on being "outside" and move to PAYE, FTC or Perm but keep my ltd company open for now. This seems very risky.
3. As above, but close my company down at the end of this tax year and seek to dissolve it by July ish and then set up a new one later in the year as and when I secure a new contract off payroll. This is my preferred option as it provides a clean break from HMRC and the associated cost risk to me of legal action.
Has anyone else considered option 3? What are the pros and cons?
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