IR35 liability from April 2021
Discussion
As we all know that from April 2021, the responsibility for compliance with IR35 in the private sector is shifting from off-payroll contractors to end-users. What would happen if a client did a wrong assessment, who will end up paying all taxes and penalties? Is it end client or a contractor ?
I am in a situation where client is willing to extend my current contract (which i am pretty sure inside IR35) and claiming my current contract is outside IR35. They have asked me to do the HMRC online employment status check which came out as outside IR35, they are going to come back to me on this later. They are willing to amend the contract and issue a new one if needed.
My question is, do i need to worry about getting my contract check with legal firms like Qdos and get it changed? From next month, all the liability will be on the end client, do i need to worry about anything if the client get the assessment wrong ?
I am in a situation where client is willing to extend my current contract (which i am pretty sure inside IR35) and claiming my current contract is outside IR35. They have asked me to do the HMRC online employment status check which came out as outside IR35, they are going to come back to me on this later. They are willing to amend the contract and issue a new one if needed.
My question is, do i need to worry about getting my contract check with legal firms like Qdos and get it changed? From next month, all the liability will be on the end client, do i need to worry about anything if the client get the assessment wrong ?
I'm no expert but believe the liability is shifting to the client along with the responsibility for status determination, which is why so many clients are taking the risk-averse approach of deeming everything inside and ceasing PSC engagements entirely.
Not many people are having the opposite problem you describe
If their own determination is outside, and the questionnaire / tool you have completed returns the same, what makes you think it may be inside?
Not many people are having the opposite problem you describe
If their own determination is outside, and the questionnaire / tool you have completed returns the same, what makes you think it may be inside?
Client told me that my current contract is outside so i just need to do CEST (for extension), HR will discuss the CEST answers with my manager and then confirm if i can carry on working through my ltd company.
In my situation, CEST outcome depends on one question, if a substitute can be rejected by client. If i say no then i am inside otherwise outside. As per my knowledge, substitute can be rejected if he is not fully qualified to carry out the duties.
Client should get the contract and working terms reviewed by third party company and then make a final decision. Instead their focus is on CEST outcome at the moment.
In my situation, CEST outcome depends on one question, if a substitute can be rejected by client. If i say no then i am inside otherwise outside. As per my knowledge, substitute can be rejected if he is not fully qualified to carry out the duties.
Client should get the contract and working terms reviewed by third party company and then make a final decision. Instead their focus is on CEST outcome at the moment.
hyphen said:
If the same employer and role, I imagine their liability would begin from April, but any historical would stay with you.
But risk is low if assessed as out
I agree with your assessment. But risk is low if assessed as out
Most folks are having to worry about sticking with the same client post April if the client has said the contract is now inside.
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