Does it make a difference?
My understanding is :
Generally, HMRC IR35 investigations look at the all the years they are legally allowed to maximise taxes.
I don't think it makes a huge difference if you return to a previous client as long as your working practices will now be different, with a new contract. If you remain or move to a new client, if investigated HMRC are likely to confirm working practices with all the contracts in the enquiry window.
If you go PAYE, close ltd company asap to mitigate IR35 risk.
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Previously on "Blanket No LtdCo Ban, Return to previous client?"
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If you stay, make a nice pension contribution out of your two months on this gig, and then if HMRC comes calling the deemed payment will be small. That makes the risk of staying low.
I think the risk of returning to the prior client is also low. No one knows, but I think HMRC will have easier and bigger targets to chase. Risks can be mitigated by making sure titles are different enough to not scream at HMRC, "He's doing the same thing."
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Originally posted by ladymuck View PostAre you going back to do the same work / type of role?
If it's the same then there's a risk, impossible to quantify how big a risk.
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Neither sound risky really.
Client X would be a new enagement anyway. Just make sure that you're a new start with them after April 6th just to cover anything off. And close your company.
If HMRC check client X they'll hopefully just say, "oh him. He started on April 10th" and that will be the end of it.
but then again they may not
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Are you going back to do the same work / type of role?
If it's the same then there's a risk, impossible to quantify how big a risk.
Leave a comment:
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Blanket No LtdCo Ban, Return to previous client?
Hi
Long time lurker, first time poster - here goes
Finished at Client X last year around Nov (and was there for 18 months), started at Client Y in Jan this year - all Inside IR35, Qudos checked, working conditions check out etc.
Client Y have decided to blanket ban all LtdCo and umbrella contractors and are forcing a switch to PAYE - there may be room for a rate negotiation to cover shortfall here but that's not confirmed.
Client X have, since I left, done the same thing as Client Y.
3 choices i'm toying with
1. Stay at Client Y and switch to PAYE with a possible re-negotiated rate - Only been here for 2 months so far, so that's not too much if HMRC come hunting - Will they look further into my past? who knows.
2. Client X want me back, but would have to be under PAYE terms - if HMRC come hunting, will they look at the previous contract I had with this client that was outside IR35? is returning too soon? I'm guessing if its the same project that could throw a red flag
3. Leave Client X and try and find a fresh client.
I'm well aware of Cojacks excellent Should I Stay post, so i'm not looking for answers, i'm more looking for a sanity check to make sure I have this rightTags: None
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