Inside IR35 Next Year

WorriedContractor

The client I provide services to has said that all contractors will be inside IR35 from April. Whilst I disagree with them, I've no choice but to accept.

From Google, I understand that being inside next year is different to this year, as next year the client has to pay Employers NIC on top on my rate, whereas just now it'd come out of my rate - is that correct?

Also, once the client has deducted my PAYE and NIC, I've read they then add VAT and pay the total to my company. Any VAT received is obviously passed straight to HMRC but what about the "net" income - is that now "mine" or "the company's"?

My instinct says it's "mine" given PAYE and NIC have been paid but legally I can see why people might say it's still the company's money so just looking for reassurance that I can withdraw all of that "net" payment and have no CT or other tax liability

Sibbers123

If you're inside from April 2020, whats changing? you're probably inside IR35 already...

The income your company receives, is the company's. However, you can withdraw it without tax consequences as long as your withdrawals to not exceed the deemed salary (you don't get taxed again essentially).

Why not ask your employer to become an employee under PAYE, then is the say no, ask why not....

unforeseen

If you're inside from April 2020, whats changing? you're probably inside IR35 already...

Not necessarily, as the change that made public bodies decide inside IR35 or not for contractors showed. A lot just made a blanket change because they couldn't be bothered to investigate and decide on the evidence. The same will happen again now the private side have to make the same choice. Unless you are absolutely essential for their business then fighting it just results in a termination of the contract and they take somebody on who doesn't fight back.

00ec25

as he says above, plenty of the big boys have made a blanket policy decision that everyone is inside

the fallout from that is yet to be challenged