FAQ - The April 2023 IR35 changes

[eek]

Given the number of questions we are getting regarding last Friday's surprise IR35 announcement I've been asked to put this thread together to place useful information in one place.

So far it covers the following.

• What are the Changes
• How will things work post April
• I MVLed my company

...

[sspt27]

Hi all

(repost as previous attempt errored for some reason)

Been lurking here for a while, as there's a lot of useful info going on. I've especially been reading recent IR35 info: I had my own LtdCo back in the late 90s/early 2000s, but the IR35 situation has changed a lot...

[Likourinos]

Hi,

I am about to sign a contract with a US company and I phoned an accountant to get some advice regarding IR35 rules.

I was told that IR35 doesn't apply to US companies but my contract could still be checked for IR35 status from the HRMC.

I am bit confused. Does...

[Willy Win]

Currently going through onboarding process with agency for an Outside IR35 contract via my Ltd company with large end client. I am still to receive the SDS but the recruitment agency's onboarding team sent a form to state my decision to either opt in or opt out of the 48 hour plus related Working Time...

[Tractor Trace]

Has anyone experienced recruitment consultants trying to push for IR35 insurance on a contract? Without naming any names I have been offered an Outside IR35 contract with an end client who is a medium- large sized company so technically I would not carry the liability.

However, agent keeps...

[Cuckoo]

Since I last submitted a tax return they have added a new question 8 on the employment pages:



The notes say:



I was working outside IR35 through my own Ltd Co until Apr 2021 and then closed the company mid 2021. The question seems to say to tick the...

[stit]

If one is open for both contract and permanent, how to arrive at equivalent pay?

Suppose we put 400/day inside IR35 on contractor calculator, we get below calculation :

• Contract outside of IR35:
  • Net monthly income is around £5,096
  • Permanent salary required is £90,470
• Contract inside

...

[0xsrwea31]

Hi everyone! I'd like to ask you for some help to make the best decision. Here's my situation:

1. Currently working as perm
2. The client I'd be contracting for is based in the US (which is why they can only hire me as a contractor in the UK)
3. They don't have a clue of what inside/outside IR35 means
4. I'd

...

[engineerer]

I am considering transitioning to contracting and I would like to ask about a few things - not necessarily about the diference between inside/outside IR35 etc, bench time, saving money etc, I've done some reading by now. I would appreciate if experienced contractors could share their views on what I...

[ForBajor]

Hello

My current outside IR35 contract is ending soon and I've just got an offer for an inside IR35 contract which according to the generic contractor salary calculator means a quite nice pay increase: from 400d outside to 700d inside. My preference is outside IR35 but this is a good client...

[Willy Win]

I have been off work with a bad case of the flu/ sickness for the past 2 days and texted in to client manager to let her know each morning that I'm not well enough to work. However this afternoon she replied stating that if I take further time off this week that I must obtain a sick note.
...

[glw]

I've accepted my first 'inside IR35' assignment to start in the new year.
I am keen to continue operating my limited company, as I have an investment property that is owned through it, so I still have the responsibility of submitting EOY accounts to HMRC. With that in mind, I see little point...

[davec123]

Good evening all,
I’ve been out the contracting work for a few years now and been books in. I’m thinking of returning to contracting and looking for advice from anyone working inside IR35 now.
1. Do I still need to be a Ltd company or Will sole trader work?
2. The consultant jobs...

[sidestepping]

Trying to go contract, but most employers I speak to seem .. dare I say it, immature and unprofessional. Most want to avoid conversations around IR35 or don't know about it at all.How do you get started contracting yourself out to professional employers?

I'm a dev/data scientist with 10+...

[luimneach2005]

Haven't contracted in several years and it's all a
bit weird to me.

Is it normal to have a penalty clause that requires ££ if you don't provide/work a notice period? Is it normal to have to sign off deliverables (that you are not capable of delivering alone) before having time...

[redpill]

My insurance is due and I'm wondering whether I should just take out professional/public liability insurance for £170 or cough up for IR35 insurance which is another £300. I know the emphasis is on the client now to deem your IR35 status so perhaps shouldn't need the insurance but I'm just wondering...

[ContractorGC]

Umbrella companies deduct employer NI and employee NI from a contractor’s day rate agreed with the hiring manager. Is this fair? Is the umbrella companies just a facade for double NI collection from a contractor’s day rate? Most hiring managers are not even aware that employer’s NI is being paid...

[spideybob]

I am in an assignment to effectively replace an employee who wasn't performing and take the analysis and output to a much higher level (so there are some specific initiatives that i will work on using my own skills).
having answered the questions in the CEST tool and Kingsbridge tool, both say...

[PK2]

Hi there.

I was unfortunately classified to fall inside IR35 only a month after my start date on this new assignment, so will now have to switch to an Umbrella.

I very much wish to continue working through my PSC, maybe straight after this assignment ends, so planning to keep...

[Davenutter]

Hi,

1st time poster .. my agency has asked me to do a CEST and then to send them the outcome.

My current thoughts are that it's my company and my CEST and my decision, why should I send it to you!!! He seems to think that it's part of my engagement that I produce this for him...

[Pikabu]

Hi all,

I'm a newbie to this site and am taking on a new contract for the first time, and wanted to check something with you all as I wasn't clear on the IR35 changes.
I know from April 6th the end-client is responsible, but because I start my first role before then, does that mean...

[mike78]

Hi All,

As per my understanding British Citizen can open limited company in Republic of Ireland even after Brexit.
I have recently liquidated my company in UK and starting a contract in ROI. I will open a limited company in ROI.


Any issues in terms of Entrepreneur...

[Ariosa]

Hi everyone,

I've been reading lots of IR35 related threads (I'm still confused) but I would also really appreciate your feedback on my current situation.

I've been with this client since April 2020, renewed once and current contract ends end of coming March. Client has...

[mwounder]

Hi Everyone,

I'm new to this and sorry if this is covered all over the place.

Like every contractor (certainly most), I'm now on the verge of heading Inside IR35 with Experis (Sky) from April 6th bar a last minute miracle by HMRC (lol).

I've done so much...

[FunkyPigeon]

Hi,

I have been a long-term observer on the forum, but this is the first time I have posted, and I was looking to get some advice on a new contract I have recently started and the IR35 status.

I started a new contact two weeks ago with a local authority and it has been deemed...

[omicron]

Hi everyone,

I have a couple of questions in regards to running my own limited company and working on contracts inside IR35.

Can income generated from contracts inside IR35 be used to:

1) pay the employer NIC
2) pay business expenses (e.g. website,...

[ukDunc]

Hi all - I am a chartered accountant providing consulting services to currently 4 clients on day rates through my limited company. One of the my clients wants me to sit on the Board, but I am fairly sure this will jeopardise my position with that client (and perhaps all my clients?) under IR35? I...

[petafin]

Hi,

As a IR35 contractor through an agency (not umbrella ), I am supposed to be paid weekly. I submitted my timesheets every week but my manager didn't approve them until 1 month so he approved 4 timesheets in one go.

Now I received the payment for those 4 weeks from the agency...

[pauljh]

Hi All,
So having given up on getting answers from QDOS (and cancelling my IR35 insurance), I'm after some initial advice before I spends lots of money on a dedicated IR35 person.

Some general question (please point me at other postings if already answered (i did search))
...

[oldbencjw]

Have been offered a new 9-month contract starting 1st December with a private sector client (through an agency), it's outside IR35

All sounds good but the client isn't very experienced with using a contractor and the agency will say anything! Should I be worried about the contract going...

[KaiProctor]

Hi,

I have been contracting inside IR35 for a while now. I pay an umbrella company £100 per month for their services (£1200 pa). I was considering going down the limited company route on the basis that I will save approx £1k per annum (£1200 of umbrella fees - £200 of limited company...

[ChrisinPL]

I used to contract in the UK through my own Ltd company which is now dormant but could be reactivated quickly. I moved to Poland for the long term 2 years ago and I am considering taking a contract role working remotely for a UK company. However a large number of these contract opportunities call...

[petafin]

Hi,

I used to be a LTD contractor and just moved to IR35. I got my first payslip but I don't understand it. Can someone explains to me those numbers?

The weekly pay is £3825 based on a 5-day week at £765.

The total paid by the client to the umbrella company is...

[omicron]

Hi,

I have my own UK limited company and signed a contract with a client (private small company) from Sweden. The contract has no end and will continue until one of the parties decides to terminate it. I'm working for this company full-time and I'm pretty much an employee except that I'm...

[Friendlygribbon]

Is it actually going to be possible to switch between different IR35 roles given the potential complexity to manage genuine business expenses?

My understanding is that most of the business expenses below can currently be claimed, but if you start an inside IR35 project the expenses you...

[ContractorConsultant]

Hi all, I have searched the forums but haven't been able to find information that will help answer my query, so I hope that you can help.

I had been contracting with my LTD company for the past 10 years in various UK organisations all outside IR35. All was going well but as a result of...

[HopefulLee]

Back story: I've worked via agencies for many years and will be branching out to contractor work.
I'll be providing temp office services cover to corporate (usually finance) companies. Also providing some virtual services.
I already have interested end-clients, but have funding/research...

[Scoooby]

I've been a Standard member of IPSE (previously PCG) for many years, mainly because of the tax investigation cover peace of mind.

My IPSE renewal is due up soon and although I'm probably going to close my company down in the coming months, I'm wondering if it's worth upgrading my membership...

[Arc1]

Hi,

In my existing contract I had the agency amend the notice period from 20 days client, 10 days contractor, to which the client agreed on a 20/20 even split.

I requested this as I believed an even period would be better for outside IR35 purposes

I am about...

[TazCaz]

I apologise if this is being discussed elsewhere - I have searched the forums and can't find anything but may have missed it.

I am fairly new to the UK and VERY new to umbrella companies and IR35. Currently with an umbrella company on an inside IR35 contract for which I was recruited...

[mrrossi]

So literally 2 hours before the IR35 reform delay was announced, my client FINALLY made a decision on how they were going to proceed.

They had decided that the role was 'inside' IR35. However, they stated that they would NOT issue an SDS to the agency, they would simply say to the agency...

[erdo]

Hello,

I'm wading through my first inside IR35 contract at the moment - which is a weird 3 way contract between a payroll company, the "employment business" (the recruiter), and me personally. I'm used to signing contracts as a limited company, I have insurance in case things...

[Oppsie]

Hi all,

Pretty much as the title says. Anyone contracting through LA International get the email “mandating” extra IR35 fee’s that are not in any contacts. What’s the thoughts on legality of this? I review all my contacts anyway. Just more interested in “email” becoming binding...

[mockedguy]

I don't get the logic behind HMRC and the IR35 changes. As far as I understand the ultimate objective is to increase the tax revenue to HMRC, based on the assumption contractors are underpaying it, but the figures seem to state the opposite.

e.g. I made up a spreadsheet to compare the...

[mrrossi]

Hi all

Had a QDOS review on a contract and they suggested the following changes would be required to secure an outside determination. They stated:

"Clause 9 - The right to provide a substitute is one of the most important tests in determining IR35
status. It...

[jacquibo]

Hi All and sorry if this has been asked 100 times before.

I am new to a public sector contract and therefore new to falling inside IR35.

I assumed, because the agent said I could, that I could continue to work through my Ltd Co. Having received the paperwork, and done some...

[Ash12004]

Hi,

I am currently negotiating my contract and have seen in both Giant's and Nasa's contracts that it mentions:

1.) National Minimum Wage
2.) Bonus which is discretionary.

I was told that on my monthly payslip it would be split as above.
...

[Freud]

I have been through the site and seen other similar questions but they don't quite answer mine. Many other PSL questions seem to have included Paystream which is recommended but not on mine.

My PSL list is:

• Nasa Group
• Clipper Contracting
• Crest Plus
• Danbro
• Giant Group
• JMK

...

[ElDuderino]

I've been offered a role which I have been told all along was outside of IR35.

I'm just gonna do this post as a list of events / concerns which have occurred with this role, firstly as a warning to other contractors (as I think this is a pretty dodgy situation), but also to get your views...

[Scoooby]

I've been assessed as inside IR35 by the client which I've challenged. They have 45 days to respond, which could well be after when the contract ends at the end of March and I'm not holding my breath for a change in decision.


There is the possibility of a new contract, but I...