IR35 "mirroring" contract terms

[CatOnMat]

Just having a quick muse regarding IR35 - as I understand it one of the things to ensure IR35-friendliness of contracts involves mirroring of relevant terms between myLtdCo to Agency contract and the "upper-tier" Agency to ClientCo contract.

Given that the upper-tier contract is confidential between those parties, how am I/myLtdCo able to establish whether the terms are in fact mirrored or not?

(Apologies if this has been explained before - if it has then I need better forum searching expertise...)

[jamesbrown]

Just having a quick muse regarding IR35 - as I understand it one of the things to ensure IR35-friendliness of contracts involves mirroring of relevant terms between myLtdCo to Agency contract and the "upper-tier" Agency to ClientCo contract.

Given that the upper-tier contract is confidential between those parties, how am I/myLtdCo able to establish whether the terms are in fact mirrored or not?

(Apologies if this has been explained before - if it has then I need better forum searching expertise...)

You can't. HTH.

[northernladuk]

You can't. Just make sure your house is in order. Get your contract check by a professional. Get a Confirmation of Arrangements from your client if possible and take out TLC35 from QDOS or IPSE+.. Or both if you are nervous.

All that should be enough to fight of an investigation before it gets to pulling upper tier contracts.

[jamesbrown]

All that should be enough to fight of an investigation before it gets to pulling upper tier contracts.

I admire your optimism

[CatOnMat]

You can't. Just make sure your house is in order. Get your contract check by a professional. Get a Confirmation of Arrangements from your client if possible and take out TLC35 from QDOS or IPSE+.. Or both if you are nervous.

All that should be enough to fight of an investigation before it gets to pulling upper tier contracts.

Thanks NLUK - already done / doing all of the above!

[CatOnMat]

You can't. HTH.

Thanks - I'm not actually that worried, just wondering whether there was something I'd missed!

[northernladuk]

I admire your optimism

That and the list of 10 other contractors with no insurance that don't know what IR35 is.

[jamesbrown]

That and the list of 10 other contractors with no insurance that don't know what IR35 is.

You'd think, but anecdotal evidence is that they don't operate like that. When an investigation is opened, they won't necessarily close it quickly, even if you can show that a valid sub has occurred. Pulling the agency contract would be a preliminary step, I imagine, as they're going to care more about that than the lower contract; it has proven successful in the past. Bottom line, there's bugger all you can do, except your own due dil or avoid agencies altogether.

[northernladuk]

You'd think, but anecdotal evidence is that they don't operate like that. When an investigation is opened, they won't necessarily close it quickly, even if you can show that a valid sub has occurred. Pulling the agency contract would be a preliminary step, I imagine, as they're going to care more about that than the lower contract; it has proven successful in the past. Bottom line, there's bugger all you can do, except your own due dil or avoid agencies altogether.

Well that pissed on my bonfire.

[CatOnMat]

You'd think, but anecdotal evidence is that they don't operate like that. When an investigation is opened, they won't necessarily close it quickly, even if you can show that a valid sub has occurred. Pulling the agency contract would be a preliminary step, I imagine, as they're going to care more about that than the lower contract; it has proven successful in the past. Bottom line, there's bugger all you can do, except your own due dil or avoid agencies altogether.

I don't disagree however sadly for a lot of people I imagine this is quite hard or impossible to do...