Reply to: IR35 penalty calculator

[drob1984]

Roughly, budget for approx 1K a month unless you on an insane day rate

[northernladuk]

Not a chance. No client would backup HMRC's claim. It's there to bat away complaints of PSC policy changes when in general discussion. They'd never put it out there as a point to be tested.

Possibly but that doesn't diminish the risk that HMRC could come knocking on the LTD's door wanting to have a closer look. It's not about the client anyway. That statement reverses what we though that inside to PSC ban put's you down the risk list for retrospective action. If HMRC think Outside to PSC is the same as outside to inside it bumps it up to possible 2nd place in the risk scale.

[LetterBox]

Not anymore....

https://www.contractoruk.com/forums/...tigations.html

Not a chance. No client would backup HMRC's claim. It's there to bat away complaints of PSC policy changes when in general discussion. They'd never put it out there as a point to be tested.

[SouWester]

...they will care if you go from outside to inside, more specifically, care very much if you do so whilst also staying with the same company. This can be identified by HMRC without even asking for (or being given) the SDS that the client has kindly made for you.

It's all about the data IMHO.

If they have the data to ID you as a 'fraud suspect', then you're at higher risk of being investigated. If they don't, then you're at lower risk of being investigated. This is just due to numbers of targets and costs to HMRC.

My ClientCo is not doing SDS AFAIK. Just everyone's contract ends 31st March, which makes sense as they don't have to bother. So, I don't know what an SDS looks like, but if it isn't provided to HMRC as structured data then this it is not likely to impact your risk of being investigated.

Once a human is involved then it's a different story.

[northernladuk]

HMRC don't care that companies have banned PSCs, .

Not anymore....

https://www.contractoruk.com/forums/...tigations.html

[LetterBox]

why is there less risk in case of blanket ban.
Does HMRC have visibility to whether your company banned PSC or whether there was SDS and you were inside ir35?

HMRC don't care that companies have banned PSCs, they will care if you go from outside to inside, more specifically, care very much if you do so whilst also staying with the same company. This can be identified by HMRC without even asking for (or being given) the SDS that the client has kindly made for you. But if you do enter the situation where HMRC care very much about what has occured, an inside SDS from the client will really not help matters when HMRC begin investigations. SDS is a risk in that it increases the hindrance to successfully batting away HMRC once an investigation is underway.

[LetterBox]

Why are you asking daft questions like this at this point? You've got 1400 posts and been involved in these discussions enough. You cannot miss the posts about the levels of risk surely.

You just a troll?

You're reading the numbers all wrong, if you base it on ratio of likes / thanks given / received then take 1400 into consideration you'll have a much better understanding, of the posters general understanding.

[Paralytic]

then dont butt in with a response to the daft questions if you have nothing to say, nobody asked you to respond

I've got this theory that there's a voice in NLUK's head that is doing exactly that...

[Andy2]

Why are you asking daft questions like this at this point? You've got 1400 posts and been involved in these discussions enough. You cannot miss the posts about the levels of risk surely.

You just a troll?

then dont butt in with a response to the daft questions if you have nothing to say, nobody asked you to respond

[northernladuk]

why is there less risk in case of blanket ban.
Does HMRC have visibility to whether your company banned PSC or whether there was SDS and you were inside ir35?

Why are you asking daft questions like this at this point? You've got 1400 posts and been involved in these discussions enough. You cannot miss the posts about the levels of risk surely.

You just a troll?

[simes]

I strongly believe that I will be outside IR35 and the CEST tool says that too, (although the right of substitution is probably hard to prove as I have never implemented it).My contract clearly does not have any mention of rejecting a substitute and I work from different locations every now and then independently.

Not having implemented an Offer of a sub, or having it rejected, is not in itself a slam dunk against your being considered for an Outside determination - in the real as opposed to client-fixed world.

I have answered the CEST questionnaire to the question, Does the client have a right to reject a sub? as Yes. Other questions obviously being taken into account, I was determined as Outside.

It would appear from this, all one needs in ones contract is that the contractor has a right to offer a sub, and equally the client has the right to reject.

[eek]

why is there less risk in case of blanket ban.
Does HMRC have visibility to whether your company banned PSC or whether there was SDS and you were inside ir35?

You don't have an SDS determination that the client needs to stand up to - and I wouldn't like to fight an IR35 where the client and agency are saying we think you are inside IR35 while you are arguing you are outside.

With a blanket ban while HMRC may come knocking at least they can't use an SDS determination of inside against you as there isn't one.

Would I be more comfortable with a blanket ban - not really as I'm not worried about HMRC taking me to tribunal I'm wouldn't want the years of hassle and pain HMRC would inflict before I got there.

[Andy2]

Dude if you had a blanket ban. There wont be a SDS prepared for you. Your in a decent spot right now

why is there less risk in case of blanket ban.
Does HMRC have visibility to whether your company banned PSC or whether there was SDS and you were inside ir35?

[redman123]

Testing

[JoJoGabor]

Without knowing your tax arrangements, whether you incomce split etc, finger in the air calculation I would assume 25% of your turnover (excluding VAT) so 0.25 *180k = £45k