Reply to: Offered a 1 year extension...

[northernladuk]

Anyone fancy a holiday in March 2020?

Seems like there will be a lot of people free that month

And possibly the month before depending on their payment schedules.

[BlueSharp]

Anyone fancy a holiday in March 2020?

Seems like there will be a lot of people free that month

As long as Brexit does not screw the market it looks like the Agent's will be lining their pockets in the new year. I might join them, for the new year, anyone have some spare hair gel and fake tan?

[BABABlackSheep]

Anyone fancy a holiday in March 2020?

Seems like there will be a lot of people free that month

[JohntheBike]

No.

mmm, pity!

[northernladuk]

has anyone in the public sector attempted to challenge this anywhere?

No.

[JohntheBike]

Completely wrong. It will be caught by the legislation regardless of when you worked it. Its the payment that counts.

IR35: reform extended to the private sector - WTT Consulting

has anyone in the public sector attempted to challenge this anywhere?

[CryingSheep]

Great information, as I was going to get my contract extended only to end of March(if I don't move). Weekly paid, but still means I need to look at the middle of March at the latest.

Usually you get paid 28 days after, make sure you take that into account...

[BABABlackSheep]

Completely wrong. It will be caught by the legislation regardless of when you worked it. Its the payment that counts.

IR35: reform extended to the private sector - WTT Consulting

Great information, as I was going to get my contract extended only to end of March(if I don't move). Weekly paid, but still means I need to look at the middle of March at the latest.

[webberg]

What he said ^^^^^

[northernladuk]

Why does a payment after the 5th of April make a difference? I've sorted out my contract until the 3rd april so assumed that would be a nice clean cut. My thinking was that the contract is assessed as outside/inside Ir35 and the contract ends on 3rd April. Surely the payment date is irrelevant?

Completely wrong. It will be caught by the legislation regardless of when you worked it. Its the payment that counts.

IR35: reform extended to the private sector - WTT Consulting

HMRC’s published guidance claims that the legislation will apply to contracts entered into or payments made on or after 6 April 2020. Even if your contract finishes in March 2020, if you do not receive payment until June 2020, the legislation will apply. If the role is deemed to be within IR35, tax and national insurance contributions are required to be paid – by the fee payer – at rates equivalent to an employee.

[JoJoGabor]

This.

December 31st comes from some people thinking that you will have been assessed between Jan and March, but my date would have been around the middle/end of Feb depending on timesheet submission.

You do not want any payments going through the April payroll, and staying on beyond 6th March may well do that.

Why does a payment after the 5th of April make a difference? I've sorted out my contract until the 3rd april so assumed that would be a nice clean cut. My thinking was that the contract is assessed as outside/inside Ir35 and the contract ends on 3rd April. Surely the payment date is irrelevant?

[WordIsBond]

Correct but not really either. Without knowing it could be one or the other or a mess in between. The fact he's been offered a 1 year extension for a role they'll take him on as a permie isn't as black and white as I made it I'll grant you but that sets alarm bells off for me big time, particularly with the 2020 coming up. Maybe he doesn't know the determination but, IMO, he certainly should be working a little harder than your average bod to make sure he knows his own status, is keeping it so and is collecting the evidence.

All you are saying is the offer might possibly fit with inside scenarios, which is obviously true. But if the inside scenarios are there the offer is irrelevant and if they aren't there and HMRC bring to tribunal that he's been offered a permie job they'll end up quite embarrassed. It just really isn't an indicator at all.

Yes, if the 1 year extension is to move him around to different projects after this one is done, or makes him part and parcel it's a problem. If it is just because it is a long project and they value his skills on it, the extension means nothing for IR35 and neither does the job offer.

[WordIsBond]

That's exactly it (apart from the "I'm very good bit" - I don't say that out loud ).

Ah, but you must do so if HMRC come calling.

[northernladuk]

Not really.

'Sure, they offered me a perm job. I'm very good and they wanted to keep me after this project is finished, so they offered me a perm job so that they'd have the ability to move me to different tasks. They can't do that while I'm running an independent business and just contracted for this project.'

Correct but not really either. Without knowing it could be one or the other or a mess in between. The fact he's been offered a 1 year extension for a role they'll take him on as a permie isn't as black and white as I made it I'll grant you but that sets alarm bells off for me big time, particularly with the 2020 coming up. Maybe he doesn't know the determination but, IMO, he certainly should be working a little harder than your average bod to make sure he knows his own status, is keeping it so and is collecting the evidence.

[man]

Not really.

'Sure, they offered me a perm job. I'm very good and they wanted to keep me after this project is finished, so they offered me a perm job so that they'd have the ability to move me to different tasks. They can't do that while I'm running an independent business and just contracted for this project.'

That's exactly it (apart from the "I'm very good bit" - I don't say that out loud ).