flook
Well-Known Member
In what way, flook? You can get contracts checked over and even get insurance to cover yourself, plus your agency and their client if you wanted, in case of an HMRC investigation. Rates are increasing too. Saw one today for £600 a day (inside IR35) for 6 months, fully remote.
I'm struggling to see the downside.
May be different in IT, but in construction pretty much all big companies are declaring/have declared a blanket "caught", with little sign of rates going up to compensate. Thankfully I saw this coming about 5 years ago and took steps to take myself out of IR35 completely, I have 2 long term clients and the odd other job, work 100% from home and provide my own hardware and software. Moving from a staff post to freelance these days is a big risk, unless you can land a small/medium business client who keeps you long enough to educate yourself and build up a network of agents etc.
Insurance can be taken (I've been a member of IPSE (or PCG as was) since its inception, and use their insurance, but that only covers the legal costs of any investigation, not the penalties and back tax which may follow. The latter is a significant issue, particularly for anyone on a long term contract with the same client. For example, your client is a large business who declares a blanket caught, (the legalities of this are a different discussion), so you're now inside IR35. You've been in the same role for 5 years, so the door is now open for HMRC to look at the previous time and determine you were also inside IR35 for the preceding years, on the basis that nothing has changed in your contractual or working relationship. So you are now open to significant back tax payments and potential penalties.
I may be being over cautious, and as I say I believe I am now legitimately outside IR35 so it doesn't really affect me, but if I was considering moving from a staff role at this time I would be very nervous