Reply to: No status determination and final payment after 06/04/2020

[ComplianceLady]

The fee payer has to determine how to treat anything paid on or after 6th April. If they don't have an SDS the liability technically sits with the end client. If you don't get a new contract/rate the fee payer can process PAYE on the pay if they believe it to be inside but they cannot deduct ERNIC from your rate and so would have to pay it on top.

Essentially it's unlikely you're just going to get PAYE processed on your existing contract - it would cost the fee payer an extra 14.2% ish.

The fee payer will be asking for an SDS and if they don't get one they'll do their own assessment. The most risk averse would issue a new contract minus the ERNIC but most would pay gross if they're confident it is outside, they have evidence they've hassled the client for an SDS and it's just the final payments.

The reason it's not more common place is it's a nightmare to manage, much easier to bring forward payrolls for anyone at the end of the contract.

[Unix]

It's on the client after end of March, so it doesn't matter when your last payment is. We no longer have to care about IR35 after this date, HMRC will only investigate larger clients. We are freeeee

[WordIsBond]

How long have you been there? Is an extra month's income worth the risk? It depends on what you are risking. If you've been there two years you don't want all that dragged into IR35 just to get another month or two of income. If you've been there three months, the risk is a lot less.

[ladymuck]

I will speak to the agency, but wanted a consensus of opinion first.

Gov.uk guidance states "If you do not receive a status determination from the client you, as the intermediary, should determine whether the off-payroll working rules apply."

My client has already said they don't intend to issue a status determination for my role as it won't exist beyond 31/03/2020.

This suggests they and my agency would make payment as normal and I, as representative of the "the intermediary", would determine whether to apply IR35 or not for that final payment. As I had already determined the engagement to be outside IR35 I would treat the final payment in the same way.

Of course, if they do unilaterally issue a status determination, that would cause a complication.

Just make sure you document everything, especially your evidence for your outside determination

[Speedbird676]

You need to sort this out with the agency. Have you asked them about this? Most agencies are paying before the 5th to get around it. It happened in the public sector and at least one agent on here said they will do the same.

I'd they refuse ask them how they will treat the payment at the end of April. Will they just pay you it as normal? If they are I'd personally just treat it like normal. It's utterly ridiculous they can tax you.insjde for a gig that the new legislation never touched. If it finished before the 5th and they will give you the money as they normally do I'd just carry one as normal.

I will speak to the agency, but wanted a consensus of opinion first.

Gov.uk guidance states "If you do not receive a status determination from the client you, as the intermediary, should determine whether the off-payroll working rules apply."

My client has already said they don't intend to issue a status determination for my role as it won't exist beyond 31/03/2020.

This suggests they and my agency would make payment as normal and I, as representative of the "the intermediary", would determine whether to apply IR35 or not for that final payment. As I had already determined the engagement to be outside IR35 I would treat the final payment in the same way.

Of course, if they do unilaterally issue a status determination, that would cause a complication.

[northernladuk]

You need to sort this out with the agency. Have you asked them about this? Most agencies are paying before the 5th to get around it. It happened in the public sector and at least one agent on here said they will do the same.

I'd they refuse ask them how they will treat the payment at the end of April. Will they just pay you it as normal? If they are I'd personally just treat it like normal. It's utterly ridiculous they can tax you.insjde for a gig that the new legislation never touched. If it finished before the 5th and they will give you the money as they normally do I'd just carry one as normal.

[Anubis]

Can anyone provide links to back up the statements that any payments made after April 5th from invoices submitted before that will come under the new rules?

I’ve looked but all I can find are discussions on forums like this.

Thanks


Sent from my iPhone using Contractor UK Forum

Prepare for changes to the off-payroll working rules (IR35) - GOV.UK

April 2020 changes to off-payroll working for intermediaries - GOV.UK

[bownyboy]

Can anyone provide links to back up the statements that any payments made after April 5th from invoices submitted before that will come under the new rules?

I’ve looked but all I can find are discussions on forums like this.

Thanks


Sent from my iPhone using Contractor UK Forum

[Speedbird676]

Could you bill up-front for March work in the Feb invoice? Is it not an option if you're friendly with key staff? That'll be paid in 30 days so won't be a problem.

I doubt it would be acceptable to them but I'll ask the question.

[Speedbird676]

And lose a months money

Top plan


Sent from my iPhone using Contractor UK Forum

It's not all about the money

After all, I was expecting to be out of contract at the end of this month and not immediately looking.

[quantum77]

Could you bill up-front for March work in the Feb invoice? Is it not an option if you're friendly with key staff? That'll be paid in 30 days so won't be a problem.

[GhostofTarbera]

Thanks for all your replies.

It sounds like it is safer to accept an extension only to the end of February with the final payment due end of March.

And lose a months money

Top plan


Sent from my iPhone using Contractor UK Forum

[Speedbird676]

Thanks for all your replies.

It sounds like it is safer to accept an extension only to the end of February with the final payment due end of March.

[eek]

But......

I suspect lots of agencies have 90-120 day terms so the reality is the end client is probably paying some stuff in April that was billed in Jan/Feb.

Yep but let's not go there.

[Manic]

But......

I suspect lots of agencies have 90-120 day terms so the reality is the end client is probably paying some stuff in April that was billed in Jan/Feb.