What should I do if I disagree with my end client’s IR35 determination?

It appears in light of the changes to IR35 due in April 2020 that some major engagers of contractors have already made policy decisions that all off payroll roles will be deemed to be inside IR35. And here it all starts… So what should I do if I disagree with my IR35 Determination?

Public statements indicate that HSBC, Morgan Stanley and M&G Investments, have already decided that this will be the case with their IR35 Determination and no doubt we will see other organisations reviewing their positions very shortly.

So is this “blanket approach” being pushed by the limited timescales before the legislation becomes law so that the clients can reduce financial risks? If that is the case, it is likely to be an attractive proposition.

Many end clients may take this as the easy way out but HMRC have stated that this approach would be frowned upon.

The legislation provides you with an opportunity to appeal the decision to the end client if they determine that the role falls within IR35, but you (and/or your agency) do not believe it should be! This gives you an opportunity to put forward your case, but how this will work in practice is unlikely to be something contractors will feel at ease with.

To make the appeal you are required to make representations on why you believe the decision is wrong. The end client then has 45 days to tell you either:
The original determination is upheld;
or
Give you a new status determination.

If the end client fails to respond within 45 days, the liability for tax and NIC reverts to them.

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