Reply to: Outside IR35 to a perm...best timing

[Kanaiya]

Or send a nudge letter to every match on their list per GSK?

I wont be surprised if they do that.

[Kanaiya]

No, they use their iXBRL-enabled data to match up company and personal accounts with the RTI data and look for anomalies. But that doesn't mean they have hundreds of qualified inspectors just sat waiting to leap on every case; they will most likely take a random sample.

So one way to keep under the radar is to follow the rules scrupulously...

No disrespect. But I believe HMRC must have upgraded there system to trigger the letter on click of the button.

[Peoplesoft bloke]

But that doesn't mean they have hundreds of qualified inspectors just sat waiting to leap on every case; they will most likely take a random sample.

Or send a nudge letter to every match on their list per GSK?

[malvolio]

I am sure HMRC system is smart enough to evaluate whats changed and filter and trigger backdate. I cant believe HMRC system is so old that they have to manually go through each and every case to identify contractors who fall under IR35.

No, they use their iXBRL-enabled data to match up company and personal accounts with the RTI data and look for anomalies. But that doesn't mean they have hundreds of qualified inspectors just sat waiting to leap on every case; they will most likely take a random sample.

So one way to keep under the radar is to follow the rules scrupulously...

[Kanaiya]

HMRC don't have the resources to chase down every edge case .

I am sure HMRC system is smart enough to evaluate whats changed and filter and trigger backdate. I cant believe HMRC system is so old that they have to manually go through each and every case to identify contractors who fall under IR35.

[JamesBrown11]

My agency was very helpful, they confirmed my final pay for March will be paid on 3rd April.

I wouldn't take such risk. What if the payment doesn't clear on the same day, or if the agency turns out to have cashflow problems, etc etc?

[sira]

My agency was very helpful, they confirmed my final pay for March will be paid on 3rd April.

[SimonMac]

Here's one for you!

I put an invoice in on the 28th Feb, which is the last day of MyCo's financial year so is included in this years books, to paid after the 6th April.

Technically I could be charged CT & VAT on this invoice but the invoice be ultimately paid PAYE (of course this would only be a problem if your accounts are done on receipt of payment not invoice generation)

[GhostofTarbera]

Not quite. You're OK as long as your last payment as a contractor is cleared before April 5th.

Most agencies pay via BACS thus it has to clear by the 3rd April (4th/5th are weekend and non BACS calendar days)


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[trailfinder09]

thanks everyone for the input!

[malvolio]

sorry to keep boring you... so to clarify, there is no difference at what moment to go perm? I hate perm jobs...but bills need to be paid

Not quite. You're OK as long as your last payment as a contractor is cleared before April 5th.

[trailfinder09]

sorry to keep boring you... so to clarify, there is no difference at what moment to go perm? I hate perm jobs...but bills need to be paid

[malvolio]

It will be in the same business but I have the option of shaping my new role, so it will have similar nature but with a broader focus and responsibilities...

So that's a no then... The only difference would be that now you have to take on whatever your client-turned-employer says you should.

That said, I think the retro aspect is all a bit overstated. HMRC don't have the resources to chase down every edge case anyway, but as long as whatever you end up doing has a different contract to your previous engagement as a freelance and the role is clearly as an employee or as an inside-IR35 engagement with radically different Ts&Cs, they would have problems challenging your previous status anyway.

[trailfinder09]

Will you be doing essentially the same type of work? Or will it be substantially different?

It will be in the same business but I have the option of shaping my new role, so it will have similar nature but with a broader focus and responsibilities...

[JamesBrown11]

Will you be doing essentially the same type of work? Or will it be substantially different?