Contract Clause Refering to ”employment related income"

[steve63]

I'm just about to sign up to a new contract between my MyCo ltd and an agency. Can anyone explain this clause:
"MyCo shall ensure that the Contractor (i.e. me) is not in receipt of any remuneration which is not employment related income as a consequence of providing any services to the Client".
There is no definition of "employment related income" anywhere in the contract.

[Lance]

I'm just about to sign up to a new contract between my MyCo ltd and an agency. Can anyone explain this clause:
"MyCo shall ensure that the Contractor (i.e. me) is not in receipt of any remuneration which is not employment related income as a consequence of providing any services to the Client".
There is no definition of "employment related income" anywhere in the contract.

You can’t sell them servers or PCs.

[ladymuck]

Have you had it checked by a firm like B&C or Qdos? Generally if they don't raise an issue then it should be fine and they'd be happy to explain what its implications are.

[dx4100]

I'm just about to sign up to a new contract between my MyCo ltd and an agency. Can anyone explain this clause:
"MyCo shall ensure that the Contractor (i.e. me) is not in receipt of any remuneration which is not employment related income as a consequence of providing any services to the Client".
There is no definition of "employment related income" anywhere in the contract.

Maybe I am over worrying but that reads to me as :- Don't pay yourself dividends...

Get it checked, as always, by IR35 experts...

[fidot]

I agree that it does appear to be saying "don't pay dividends" but one receives dividends as a result of holding shares not as a result of providing services.

[Manic]

I agree that it does appear to be saying "don't pay dividends" but one receives dividends as a result of holding shares not as a result of providing services.

+1 - Clever way to stipulate PAYE payments.

[Old Greg]

I'm just about to sign up to a new contract between my MyCo ltd and an agency. Can anyone explain this clause:
"MyCo shall ensure that the Contractor (i.e. me) is not in receipt of any remuneration which is not employment related income as a consequence of providing any services to the Client".
There is no definition of "employment related income" anywhere in the contract.

Just ignore the clause. They can always sue for damages if they find out.

[fidot]

+1 - Clever way to stipulate PAYE payments.

It's not that clever because dividends are paid as a result of share holding, so no reason to not pay them because duvidends wouldn't be in the scope of that clause.

The clause, to my reading says that any payments to the contractor resulting from providing services to the client must be paye.

IANAL