Contractors' Questions: Am I inside IR35?

IT contractor's question:



I have worked for one year as a limited company (Ltd Co.) through a recruitment agency to provide services for the 'client'.



During that time I have had two other short clients, though not through an agency



I am pretty sure I am inside IR35 for this contract. However, I have just requested a copy of the contract with the agency and the copy was an unsigned copy.



I have since realised that when I started this assignment, the contract was never signed, so for the past year there has been no legal contract with myself, (operating from a Ltd Co.) and the agency.



What does this legally mean in terms of IR35? Am I not inside IR35, as legally there is no signed copy?





IR35 advisor's answer:



Firstly, having concurrent work is always helpful to your status position as although IR35 is concerned with relevant engagements, concurrent work supports being in business on your own account.



As to the contract it is impossible to say if it is inside or outside IR35 without seeing it. It is often the case that there will be a clause in the contract to the effect that if you do the work you will be deemed to have accepted the terms and conditions whether or not you have signed the contract, so it is most important that you check for this first



The contract is always the starting point in deciding IR35, but in the event of an investigation it will be the terms and conditions of the relationship between you as an individual and the Client that will be considered. This consideration would include all the contracts in the chain.



Just because you do not have a signed contract does not mean that you are inside IR35. I recommend that you consider having your contract reviewed by a specialist to give you some certainty in this situation.



Response kindly provided by Kate Cottrell, founding partner at Bauer & Cottrell, which specialises in IR35, Section 660 and Employment Status