Fosters

When is the IR going to start chasing contractors who aren't complying with the IR35 rule and should be? ie; their contract, if inspected, would fall under IR35.

I'm paying up, but if the IR isn't going to come knocking, what's the point.

fast bloke

Mainly cos if they decide to come knocking in 5 years time you will have the choice to sell your house to pay 5 years back tax or go to jail

devils_ad69

Have you joined the PCG? See www.pcgroup.org.uk - The ONLY group that is fighting IR35.

Fosters

I haven't joined, but might do.

So, is anyone merrily carrying on paying divies then?

devils_ad69

Fosters,

NO OTHER ORGANISATION will defeat IR35 other than the PCG. Membership is £100.

At the moment, the PCG are raising funds to contineu with the Judicial Review and start Case Law battes with the IR.

200K (yes two hundred thousand punds) has been pledged by PCG members in the last 7 days or so.

I've recently bought a book (with a PCG discount) which covers in detail what to do when the IR come knocking. And beleive me, they will. This book is an absolute MUST for anyone who comes into contact with the IR.

The choice, as they say, is yours.

PS There are also (members only) forums with an absolute wealth of information re: IR35 and what the PCG is up to.

father_jack

Yep - I'm still taking divvies
I just ticked the box saying IR35 doesn't apply on whatever form it was. I do have a large contingency fund incase, but my contract is watertight

Join the PCG if you haven't already done so....

father_jack

Meant to also say I'm tempted to close down the current company and open a new one, then front the IR to check compliance. Not sure tho... might attract attention.

devils_ad69

father_jack,

I think the IR have to agree to your request to close down the company. No doubt at that time, they'll give you the once over re: IR35.

Bajie

IR35.
If at all possible it is better to be outside of IR35 than within.
It is far better to have your contract written to your own benefit so IR35 does not apply. There are companies that do this on the contractors behalf.
If I ever work in the UK again I will definitely not be working within IR35.

polarbearit

Father, I'm currently doing as as you suggested and closing down my old co.

So far so good, IR still have a few weeks to object, but have been happy so far...

Jon

Crispin

I'm paying dividends still.....and am paying my accountant and contract lawyer to make sure I don't have to pay IR35.

father_jack

Devil - The IR don't need to give u permission to shut down a co.
but they can still audit you (i.e. chase directors) up to 7 years later. But they are unlikely to do so.

Polar - You're doing what I was thinking of, just not sure if it'll attract too much attention. But I should have a new address, which will help . Hmmmmmm.
It's bollox anyway, I pay far more in tax as VAT than I ever would as a permie... shortsighted *****.......

rich101

ehmm, Jack

VAT = Value Added Tax collected on behalf of Customs & Excise

just stating the obvious, and before you all start I have spent a fortune over the last 7 years supporting this economy !!!!

Chaps the whole IT market is in the dog house and I only hope the IR do not have to make up the numbers pre-down turn i.e. justifying the whole IR35 revenue stream. Cannot remember the numbers but it was scary.

rich

father_jack

I know what VAT is !! I was just saying if they close me down i.e. if I go permie - they will lose loads more tax income by me not paying vat and other company taxes... aqnyway it's all a bit of a minefield at the moment..

devils_ad69

fther_jack,

The figures just don't add up. May I suggest you write to your MP to highlight this discrepancy.

My longer term plan is simply to work 6 months of the year, take all fees as PAYE/NI and then chill out the other 6 months. Sure a big drop in income but ever since the boom Y2K times, I've (slowly but steadily) getting my finances back in order.

Taff

Bajie

It is nonsense to say you can have a contract written that puts you outside IR35.

At the end of the day it does not matter what the contract says - the IR will interview and research the actual circumstances of the contract and draw their conclusions from that.

THERE IS NO SUCH THING AS AN IR35 PROOF CONTRACT.

From personal experience we had an IT contractor on our IR35 friendly contract and she was working at an obliging/cooperative client. Even so, the IR made a few calls, questioned a few managers and decided she was a disguised employee despite what the contract said. Hey presto - stung for tax.

As mentioned above, the PCG can provide a model contract but it is the reality of the situation that will ultimately decide your fate.

Cheers
Taff

P.S. I found the best way to lower my tax without and "dodgy" dealings was to move to Guernsey. Flat rate 20% and I currently have a personal allowance in excess of £30k!!

Max speed limit is 35mph - can't remember the last time I heard the turbo on my scoobie

father_jack

I'm not suggesting you can wave a piece of paper under the IR's nose and tell em to **** off. But it's still an important part of it. If it went to court then even more so.

Toerag

Taff - I'm in Guernsey too, what do you drive?