The All Things IR35 Related Thread

Kenai · 23 Sep 2022 at 12:59

dl8860 said:
So disguised employment while operating through an LTD is fully back on the menu?

Sounds like it, if you're confident the last two years didn't land you on a list of people worth checking into because their client companies wanted to declare them inside

Pudney · 23 Sep 2022 at 12:59

Maccy said:
Guess we can nuke this thread?

dl8860 said:
So disguised employment while operating through an LTD is fully back on the menu?

IR35 isn't gone, and HMRC won't be reducing their compliance activity I imagine.

Edit: and don't forget, all the current tax cases going through the various stages essentially pre-date these rules that are being repealed.

dl8860 · 23 Sep 2022 at 13:06

Pudney said:
IR35 isn't gone, and HMRC won't be reducing their compliance activity I imagine.

Edit: and don't forget, all the current tax cases going through the various stages essentially pre-date these rules that are being repealed.

So IR35 is still applicable, but the hiring company no longer makes the determination?

ChrisD. · 23 Sep 2022 at 13:13

dl8860 said:
So IR35 is still applicable, but the hiring company no longer makes the determination?

Correct, you make it now, like before.

Pudney · 23 Sep 2022 at 13:13

dl8860 said:
So IR35 is still applicable, but the hiring company no longer makes the determination?

Exactly.

jonneymendoza · 23 Sep 2022 at 13:17

Maccy said:
Guess we can nuke this thread?

LIZZ FOR PM!!!!.

First she adds a bit of discount on stamp duty and not this!!! It’s like Christmas

dl8860 · 23 Sep 2022 at 13:17

ChrisD. said:
Correct, you make it now, like before.

So if anything it's back to being more treacherous? At least with the hiring company making the determination, that's some ammunition towards displaying you're a bona fide contractor.

Kenai · 23 Sep 2022 at 13:19

ChrisD. said:
Correct, you make it now, like before.

... and presumably again carry the risk of the consequences should HMRC elect to go digging and decide your determination of not being a disguised employee was incorrect.

Pudney · 23 Sep 2022 at 13:20

dl8860 said:
So if anything it's back to being more treacherous? At least with the hiring company making the determination, that's some ammunition towards displaying you're a bona fide contractor.

Kenai said:
... and presumably again carry the risk of the consequences should HMRC elect to go digging and decide your determination of not being a disguised employee was incorrect.

Yes, but you can get insurance against the risk.

Cadder · 23 Sep 2022 at 18:54

I'm not sure if I prefer how it was the last few years or this change to the old way.

Contract discussions have been easier over the last few years

NickK · 24 Sep 2022 at 15:11

Hmm I see the public sector is going to get completely screwed over at the contract renewals.. rich contractors making money out of the government with tax breaks too..

I'm inside IR35 at the moment but for private sector. The reality is the market is going to churn like the early 2000s. However the companies will not be able to afford it and it's another reason for companies moving out of the UK. No highly skilled immigrants to promote competition and reduce costs.

Bear · 17 Oct 2022 at 11:25

Jeremy Hunt just announced that the IR35 reforms are not going ahead. As a contactor that is outside of IR35 Im happy with this as the onus isnt put on me but remains on the client.

jonneymendoza · 17 Oct 2022 at 11:49

Bear said:
Jeremy Hunt just announced that the IR35 reforms are not going ahead. As a contactor that is outside of IR35 Im happy with this as the onus isnt put on me but remains on the client.

I'm 50 50 on this. I prefer not to have it as it makes life easier but meh, another shambles by the government

Maccy · 17 Oct 2022 at 16:09

jaybee · 18 Oct 2022 at 13:17

Oh dear. Another U turn even on this. I know a lot of people that were talking about moving to contracting next year if this were to have gone ahead.

turbot1984 · 18 Oct 2022 at 13:25

What a shambles again. Who voted for these muppets?

shadow_boxer · 18 Oct 2022 at 18:05

Shambles nicely sums this up. I'm currently a contractor outside of IR35 and would have been more likely to continue do so had the reforms been reversed. Despite reassurances from my accountant I still feel a little uneasy. My clients are quite happy to continue to see me as outside IR35 for now but I can see some pressure possibly been applied in the near future. So hard to know what the right thing to do is.

dl8860 · 19 Oct 2022 at 08:09

jaybee said:
Oh dear. Another U turn even on this. I know a lot of people that were talking about moving to contracting next year if this were to have gone ahead.

I don't think this is a bad thing then if it puts people off 'becoming' contractors just for the more advantageous tax arrangement.

I am starting a contract role next month, which has been deemed outside IR35 by my client. I'd still be taking the role if they deemed it inside IR35 though, it's the right role for me and a good rate. I wouldn't be deciding to take it or not based on being able to take home another 7-9% or whatever it is due to being LTD vs umbrella.

Shoza · 19 Oct 2022 at 08:31

I don’t think this was handled well at all. They should just put taxes up on those outside of IR35 so it’s more balanced and fairer.

Hades · 19 Oct 2022 at 08:40

I'm not a contractor but I did see the impact it had on my industry when they introduced it (Financial IT). To avoid the risk of classifying contractors incorrectly many companies simply stopped employing them and tried to convert them to permies. Where people wouldn't convert to lower paid permanent roles the jobs were moved to India.

So when Kamikwazi announced the repeal I thought it was a great idea and likely to spark growth in the contract market again. As I am between jobs it even got me thinking about contracting. Sadly now the repeal has been reinstated I see lots of hopes dashed and an opportunity for growth in that sector thrown away.