need help- got a outside IR35 contract

[truhislo]

thanks. I am not going ahead with the contract

[LondonManc]

One slightly positive thing about the OP's situation is that he hasn't taken the contract yet, so even if he takes the contract, switches to inside ir35 comes april, and gets investigated by hmrc, he'll have to backpay tax for only a few months.

There's still plenty out there who I'm sure will have to backpay tax for 2+ years and I can't wait for them to come here complaining and/or crying like toddlers.

And people were wondering who’s footing the bill for COVID.

[PCTNN]

One slightly positive thing about the OP's situation is that he hasn't taken the contract yet, so even if he takes the contract, switches to inside ir35 comes april, and gets investigated by hmrc, he'll have to backpay tax for only a few months.

There's still plenty out there who I'm sure will have to backpay tax for 2+ years and I can't wait for them to come here complaining and/or crying like toddlers.

[LondonManc]

I am in a not so well paid perm at the moment and got a outside IR35 6 months contract role with a reasonable pay , with take home difference is 2000 GBP. The agency says after April when IR35 rules change, they will offer me 70-80 GBP per day extra to compensate which would keep take home same.
As its just few months away to April 2020 , I am re-thinking if its safe to switch. Can you please share your thoughts? Thanks

Key question in this:

What have the agency said will change that will alter the IR35 status of the contract?
Something significant will have to change to push it inside - that is based on it not being so already.
A retrospective tax inspection will ask exactly that; if your contract is inside at the point of inspection but the previous contract for essentially the same gig was outside, what will have changed?

[nomadd]

I am in a not so well paid perm at the moment and got a outside IR35 6 months contract role with a reasonable pay , with take home difference is 2000 GBP. The agency says after April when IR35 rules change, they will offer me 70-80 GBP per day extra to compensate which would keep take home same.
As its just few months away to April 2020 , I am re-thinking if its safe to switch. Can you please share your thoughts? Thanks

So, basically, as far as HMRC are concerned, you are inside IR35 right now - but you are just trying to claim that you are outside.

[PCTNN]

come April that money suddenly isn't going to be available and your only option will be to accept the current rate but inside IR35 (if they don't bin you out right).

That's what I would do if I was the consultancy; but I'd also look around to see if there are any desperate contractors willing to take the OP's role for OP's rate - 100 and bin the OP regardless.

[wattaj]

Anyway as you are working just stay in the role you have now - we are in a global pandemic.

^^ This.

[SueEllen]

sorry , it is a contract with a consultancy working for public sector end client. So for now, its a 6 month outside IR35 contract on paper. When I asked the agency about what's the plan after April, they replied the consultancy would change contract to inside IR35 with an increased day rate. This is the complete story

So the agent sent that to you in an email? No because the agent isn't telling you the truth. Companies never promise anything.

Anyway as you are working just stay in the role you have now - we are in a global pandemic.

[eek]

sorry , it is a contract with a consultancy working for public sector end client. So for now, its a 6 month outside IR35 contract on paper. When I asked the agency about what's the plan after April, they replied the consultancy would change contract to inside IR35 with an increased day rate. This is the complete story

So the consultancy believes the work is inside IR35 but doesn't want to pay the money now.

Which means someone somewhere isn't telling you the truth as either they are lying now to pocket the £400 a week extra or come April that money suddenly isn't going to be available and your only option will be to accept the current rate but inside IR35 (if they don't bin you out right).

[malvolio]

sorry , it is a contract with a consultancy working for public sector end client. So for now, its a 6 month outside IR35 contract on paper. When I asked the agency about what's the plan after April, they replied the consultancy would change contract to inside IR35 with an increased day rate. This is the complete story

No it's not.

There is a reasonable chance the consultancy will simply drop you after the initial contract is over. If they do, you will have real problems getting the next contract, given the huge number of experienced people on the market right now. It's your decision, but short term gains at this point in time are a very bad idea - especially when there's a real chance the net result is that you will be much worse off in a year's time.

Your call, but it's not simply a case of earning a bit more money.

And never ever base your decisions on what the agency said. Their job is not to protect you, it's to maximise how much money they make.

[truhislo]

It's not outside if the client think it's will be inside comes April

But you previously said that this contract was public sector where the IR35 rules have been in place for years.



So could you tell us the complete story as I'm fed up playing 20 questions

sorry , it is a contract with a consultancy working for public sector end client. So for now, its a 6 month outside IR35 contract on paper. When I asked the agency about what's the plan after April, they replied the consultancy would change contract to inside IR35 with an increased day rate. This is the complete story

[fullyautomatix]

In the current uncertain climate we are in, its better to hold on to the perm job for as long as you can. You must be joking taking on a contract for extra money.

[eek]

I am in a not so well paid perm at the moment and got a outside IR35 6 months contract role with a reasonable pay , with take home difference is 2000 GBP. The agency says after April when IR35 rules change, they will offer me 70-80 GBP per day extra to compensate which would keep take home same.
As its just few months away to April 2020 , I am re-thinking if its safe to switch. Can you please share your thoughts? Thanks

It's not outside if the client think it's will be inside comes April

But you previously said that this contract was public sector where the IR35 rules have been in place for years.

I got a contract role( outside IR35 ) and remote work to start with. It is to work for a public sector client. For family reasons, I might have to work from abroad for a couple of months after starting the role. The contract does not mention about any location clauses. Please could you shed some light whether its legal to work from outside UK as long as I abide to data privacy clauses.

So could you tell us the complete story as I'm fed up playing 20 questions

[truhislo]

I am in a not so well paid perm at the moment and got a outside IR35 6 months contract role with a reasonable pay , with take home difference is 2000 GBP. The agency says after April when IR35 rules change, they will offer me 70-80 GBP per day extra to compensate which would keep take home same.
As its just few months away to April 2020 , I am re-thinking if its safe to switch. Can you please share your thoughts? Thanks