Pemie role - jump ship before 5th April

[gables]

Another consideration (yeah I know loads of stuff) is how long you have been there. If it's a matter of weeks then the back tax is less bad than say 20 months. Also inside IR35 as you know you can't claim T&S, but if you're getting close to 24 months it becomes less relevant as outside IR35 you can't claim it either.

[TheFaQQer]

The end client is taking a blanket everyone on approach.

I would remind the client that they have a legal duty of care here and to ask to see how they made the assessment. Highlight the legislation requires them to take this duty of care, so on what basis have they determined that you are inside IR35.

[LondonManc]

My contract was deemed outside of Ir35 before the new rules - I had the contract and working practices checked by QDOS. The end client is taking a blanket everyone on approach.

I need to give at least a week's notice and I'm unlikely to be paid before the 5th April, so whatever happens I'll get a payment after the 5th - unless I forfeit a few weeks salary and ask not to be paid. I have a few weeks before my next appointment starts, so I could cancel the contract and wait it out as unemployed for a couple of weeks. I'm just trying to get a feel for how likely it'll be that HMRC takes retrospective action on contracts - my accountant and the chap at QDOS said it's unlikely - although who knows...

That changes things significantly imho.

That said, what has your accountant and the chap at QDOS said about your contract now being deemed inside IR35?

[teapot418]

My contract was deemed outside of Ir35 before the new rules - I had the contract and working practices checked by QDOS. The end client is taking a blanket everyone on approach.

I need to give at least a week's notice and I'm unlikely to be paid before the 5th April, so whatever happens I'll get a payment after the 5th - unless I forfeit a few weeks salary and ask not to be paid. I have a few weeks before my next appointment starts, so I could cancel the contract and wait it out as unemployed for a couple of weeks. I'm just trying to get a feel for how likely it'll be that HMRC takes retrospective action on contracts - my accountant and the chap at QDOS said it's unlikely - although who knows...

No-one really knows. The insurers do seem to think it's unlikely - they're still offering cover and haven't (AFAIK) increased premiums. But it does look like an easy target - you're working for the same organisation in the same role - if nothing has changed and the client says you're IR35 caught, then why weren't you before? A call only you can make, but if I were you, at the very least, I'd make sure I keep my tax investigation insurance running for the foreseeable.

[Biggles78]

My contract was deemed outside of Ir35 before the new rules - I had the contract and working practices checked by QDOS. The end client is taking a blanket everyone on approach.

I need to give at least a week's notice and I'm unlikely to be paid before the 5th April, so whatever happens I'll get a payment after the 5th - unless I forfeit a few weeks salary and ask not to be paid. I have a few weeks before my next appointment starts, so I could cancel the contract and wait it out as unemployed for a couple of weeks. I'm just trying to get a feel for how likely it'll be that HMRC takes retrospective action on contracts - my accountant and the chap at QDOS said it's unlikely - although who knows...

[TheFaQQer]

I currently spend about £500 a month on travel and pay myself a low basic salary, given travel deductions will no longer be allowed, presumably if I stick to contracting within the public sector the only way to cover travel expenses would be to increase my basic rate of pay and pay out of my income after tax?

Posts 3, 4 and 5 in the shiny new Public Sector IR35 FAQ might be relevant to you here - http://forums.contractoruk.com/publi...bout-ir35.html

I've been offered a permie role which I'm tempted to take - from a IR35 tax perspective what are the issues with taking the job after 5th April? I'm trying to work out if I'm better off cutting loose now and leaving before the 5th or in a few weeks time...

Any payment received on or after April 6th must be made in line with the new legislation - so if you are going to leave anyway then you really want to get that money in your bank account ASAP.

[LondonManc]

You're currently in a role that has been deemed inside IR35?
Was it outside IR35 in March, i.e. now?

If that's the case, I'd want that contract terminating and paying up before next Thursday.

[Biggles78]

Hi,
I've just been told I'm deemed inside IR35 (as I thought I would be - it's easier and safer from a public sector perspective). Interestingly I've plugged my details into a couple of IR35 take home calculators and they come out with 2 different figures, about £1,000 per month apart (contractor uk being the lower figure and one I'm more inclined to follow).

IR35 Tax Calculator

I currently spend about £500 a month on travel and pay myself a low basic salary, given travel deductions will no longer be allowed, presumably if I stick to contracting within the public sector the only way to cover travel expenses would be to increase my basic rate of pay and pay out of my income after tax?

I've been offered a permie role which I'm tempted to take - from a IR35 tax perspective what are the issues with taking the job after 5th April? I'm trying to work out if I'm better off cutting loose now and leaving before the 5th or in a few weeks time...