Contractor to perm, back to Contract

[northernladuk]

OK. Let's kill this drip feed thread dead.

A brief description of IR35 is..

IR35 is a word used to describe two sets of tax legislation that are designed to combat tax avoidance by workers, and the firms hiring them, who are supplying their services to clients via an intermediary, such as a limited company, but who would be an employee if the intermediary was not use

Does this apply to you? No. Job done.

The problem you have is if the consultancy is treating you like an employee. The fact you are moving on to a new client then it certainly sounds like it. This is the area where you are at risk.

But as I say.. You seriously need to know this if you are a contractor. We've got a huge change coming in April and if you don't know what IR35 even represents its going to be very difficult for you.

[nazzer]

So you've no relationship to the client at all then. You need to do better than this.

We're about to start going thru an initial assessment process with the MSP. To see where we land. My companies most recent contract / terms of engagement does indeed read well re substitution, control and MOO. I just had some concerns about having some previous employment with the end client, hence the post.

[northernladuk]

Thanks for the reply. Forgot to mention that I am contracted thru an msp rather than direct to the client so hopefully that's better too? Cheers

So you've no relationship to the client at all then. You need to do better than this.

[nazzer]

Lube up?

All joking aside, it depends on your attitude to risk (did you have contract reviews, insurances, IPSE membership etc) and whether you believe HMRC assurances about historic cases post April 2021. I don't believe a word of it and on a personal level I wouldn't take the risk. Post April 2021, if you're still outside IR35 it will then be the client that is the primary target.

However, for the length of contract from Jan 2020 to date, I would suspect HMRC has more juicy permitractors to pursue such as those who were on £700+ per day at large banks/financial services companies for a long stints.

Thanks for the reply. Forgot to mention that I am contracted thru an msp rather than direct to the client so hopefully that's better too? Cheers

[ShandyDrinker]

Lube up?

All joking aside, it depends on your attitude to risk (did you have contract reviews, insurances, IPSE membership etc) and whether you believe HMRC assurances about historic cases post April 2021. I don't believe a word of it and on a personal level I wouldn't take the risk. Post April 2021, if you're still outside IR35 it will then be the client that is the primary target.

However, for the length of contract from Jan 2020 to date, I would suspect HMRC has more juicy permitractors to pursue such as those who were on £700+ per day at large banks/financial services companies for a long stints.

[northernladuk]

I worked as a contractor for several years with a few different clients. I then went perm for about 18 months, then was informed that I was in scope for redundancy. I didn't hang around for the date, I handed in my notice. I started a new ltd company and left. I did 6 months contract at a large bank and then in January 2020 went back to the company that had tried to make me redundant. The role is different as previously I was IT engineer now im technical pm. Just wondering what if any risks are present from ir35 perspective? Thanks in advance.

Have you gone back as an employee or as a permanent member of staff? Are they not concerned that you've come in to a totally different role from what you were doing only six months later?

Either way, the biggest IR35 problem is your lack of understanding or willingness to learn about what you do IMO.

Regarding the situation of going back there is no IR35 risk whatsoever as long as you got all your contracts checked properly, took out the relvant memberships/insurance and know enough about IR35 to act outside.. After April? Then who knows.
Regarding being in contact for a year and only just coming round to this question I think you could be in trouble looking at your attitude and knowledge of IR35.

Why are you asking this over a year after you started?

[nazzer]

I worked as a contractor for several years with a few different clients. I then went perm for about 18 months, then was informed that I was in scope for redundancy. I didn't hang around for the date, I handed in my notice. I started a new ltd company and left. I did 6 months contract at a large bank and then in January 2020 went back to the company that had tried to make me redundant. The role is different as previously I was IT engineer now im technical pm. Just wondering what if any risks are present from ir35 perspective? Thanks in advance.