Hi,

Does anyone know if there are penalties for either side, if the decision is outside IR35 and later decided to be inside IR35, when the contractor has operated a legal PAYE scheme, with no dividends?

I've operated a part time contract for around 4 years. Over this time I've had minimal expenses, insurance, accountants, bank charges etc. I've paid a minimum wage and using a Salary Sacrifice put the remainder directly from my company into a SIPP.

So up to April 2020 it hasn't mattered whether I was inside or outside IR35, as all companies can use Salary Sacrifice.

If I am deemed to be inside IR35 I can no longer do this.

Is there any risk for the client in deciding I'm outside IR35, provided I continue using Salary Sacrifice?

Regards

John