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Previously on "New Contract Starting 30 March 2020 ... Confused About IR35 Changes"

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  • jamesbrown
    replied
    Originally posted by Wall View Post
    What happens if the client does not make the determination? My understanding it’s 6th April minus 45 days is this correct?


    Sent from my iPhone using Contractor UK Forum
    The client is the Fee Payer until such time as they issue an SDS, completed with reasonable care, to the supply chain (including the contractor). So they'd be pretty stupid not to provide one, unless they are already the Fee Payer. Likewise, the contractor has a right of appeal and, if the client fails to respond within 45 days, they again become the Fee Payer. An SDS completed before April 6 can be used after April 6 to satisfy the actual legislative requirement (which will begin on 6 April, assuming it goes ahead).

    Leave a comment:


  • Wall
    replied
    Originally posted by DevUK View Post
    You need to know (from the client), for certain, which status they determine the contract. No harm in asking for this determination up front, it's only a matter of 6 days before it's their responsibility to have made that determination anyway.

    There's increasing talk about the possibility of IR35 not going ahead on this forum, have I missed something? I've lost track of it the last few days has their been an update I've missed out on? Genuine question.
    What happens if the client does not make the determination? My understanding it’s 6th April minus 45 days is this correct?


    Sent from my iPhone using Contractor UK Forum

    Leave a comment:


  • jamesbrown
    replied
    Originally posted by Tuttle View Post
    No, it's not a small company
    In that case, the responsibility lies with the client to issue an SDS, taking reasonable care, and with the Fee Payer to operate a deemed payment if the contract is inside. You have no formal responsibilities but, if the client asks for supporting information to help them with the SDS, you should provide accurate information. You have a right of appeal. All of these comments are based on draft legislation and the responsibilities and liabilities can only apply from 6 April once the legislation has been enacted and has come into effect.

    Leave a comment:


  • Tuttle
    replied
    Originally posted by jamesbrown View Post
    Is the client a small company according to the definition in the Companies Act 2006?
    No, it's not a small company

    Leave a comment:


  • jamesbrown
    replied
    Is the client a small company according to the definition in the Companies Act 2006?

    To qualify as a small company, at least two of the following conditions must be met.

    Annual turnover is no more than £10.2 million
    Balance sheet total is no more than £5.1 million
    No more than 50 employees.

    Leave a comment:


  • Tuttle
    replied
    So if the IR35 changes are 99.99% likely to happen is there any point in me getting this contract reviewed or should I just be asking the client for their assessment on IR35 status?

    From a quick skim of the contract I think it could be worded better in places, I was going to get it reviewed and then ask for changes based on the review comments, but now I'm not sure that it is my responsibility any more.

    If the client decides it is outside and HMRC later decide it was inside will HMRC only go after the client or will they come after me as well?
    Last edited by Tuttle; 19 February 2020, 23:09.

    Leave a comment:


  • Manic
    replied
    Originally posted by Tuttle View Post
    Ok, thanks, I didn't know there were any deadlines before 6th April.

    I'm assuming the IR35 changes aren't definite until the the budget happens, I'd like to think they will be delayed or scrapped but I know that is just wishful thinking
    Already drafted in prep for the budget that didn't happen in November.
    200+ Govt majority

    I'd say there is a chance of it not happening so I'm going 0.01%

    Leave a comment:


  • Tuttle
    replied
    Originally posted by DevUK View Post
    You need to know (from the client), for certain, which status they determine the contract. No harm in asking for this determination up front, it's only a matter of 6 days before it's their responsibility to have made that determination anyway.

    There's increasing talk about the possibility of IR35 not going ahead on this forum, have I missed something? I've lost track of it the last few days has their been an update I've missed out on? Genuine question.
    Ok, thanks, I didn't know there were any deadlines before 6th April.

    I'm assuming the IR35 changes aren't definite until the the budget happens, I'd like to think they will be delayed or scrapped but I know that is just wishful thinking

    Leave a comment:


  • eek
    replied
    Originally posted by DevUK View Post
    You need to know (from the client), for certain, which status they determine the contract. No harm in asking for this determination up front, it's only a matter of 6 days before it's their responsibility to have made that determination anyway.

    There's increasing talk about the possibility of IR35 not going ahead on this forum, have I missed something? I've lost track of it the last few days has their been an update I've missed out on? Genuine question.
    Is there as I haven't seen it. The odds of IR35 not being implemented in the private sector on April 6th is probably 0%...

    Leave a comment:


  • DevUK
    replied
    Originally posted by Tuttle View Post
    Hi,

    I have just received a 3 month contract offer for work starting 30 March 2020 from a company I have never dealt with before.

    I was thinking about getting IPSE to review the contract, as I have with other contracts, but then I realised that after April 6 it will be the clients responsibility to determine IR35 status (as I understand it).

    There is no mention of IR35 but the contract does say that the consultant is responsible for payment of income tax, NI and any VAT liability, which I think implies outside.

    What are my responsibilities under the new rules? Do I need to do anything or is it the clients responsibility to inform me if they consider the contract inside (in which case I wouldn't take it)?

    I guess if the government decide not to roll out the IR35 changes in April (still possible?) then I would be responsible for determining IR35 status, so maybe I should get the review done anyway.
    You need to know (from the client), for certain, which status they determine the contract. No harm in asking for this determination up front, it's only a matter of 6 days before it's their responsibility to have made that determination anyway.

    There's increasing talk about the possibility of IR35 not going ahead on this forum, have I missed something? I've lost track of it the last few days has their been an update I've missed out on? Genuine question.

    Leave a comment:


  • New Contract Starting 30 March 2020 ... Confused About IR35 Changes

    Hi,

    I have just received a 3 month contract offer for work starting 30 March 2020 from a company I have never dealt with before.

    I was thinking about getting IPSE to review the contract, as I have with other contracts, but then I realised that after April 6 it will be the clients responsibility to determine IR35 status (as I understand it).

    There is no mention of IR35 but the contract does say that the consultant is responsible for payment of income tax, NI and any VAT liability, which I think implies outside.

    What are my responsibilities under the new rules? Do I need to do anything or is it the clients responsibility to inform me if they consider the contract inside (in which case I wouldn't take it)?

    I guess if the government decide not to roll out the IR35 changes in April (still possible?) then I would be responsible for determining IR35 status, so maybe I should get the review done anyway.

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