24 months + Contract renewal

[krytonsheep]

Although the length of time you are in a contract has no bearing on IR35, 2 year + contracts do give a hint to HMRC that you may not be in business on your own account.

[v8gaz]

Although the length of time you are in a contract has no bearing on IR35, 2 year + contracts do give a hint to HMRC that you may not be in business on your own account.

citation needed ...

[Alan @ BroomeAffinity]

Although the length of time you are in a contract has no bearing on IR35, 2 year + contracts do give a hint to HMRC that you may not be in business on your own account.

Hearsay, m'lud.

[northernladuk]

Although the length of time you are in a contract has no bearing on IR35, 2 year + contracts do give a hint to HMRC that you may not be in business on your own account.

I would say the above comment is not true as it is worded but I do see around me many of the people that have been here on long stints are either ex employees of the client who still act like they are still employed and a number of people who have taken their eye of the ball and have started to slip in to a bad routine. I would argue a number of contractors make themselves look like 'hidden employees' in long contracts (as shown in the JLJ case) yes, but as a hint to HMRC I would disagree.

[quackhandle]

I knew a guy (developer) in one of my previous gigs who had been with the client (direct, no pimp) for over eight years as a Ltd co contractor, he was best mates with the current CTO, going back many years working for same client then it got bought out. When asked about IR35, he was very dismissive of it, but I did wonder what would happen if he got investigated. A few years with same client, fair enough but eight years?

qh

[RockyBalboa]

Post 24 months, could he operate under a new LTD and claim travel expenses all over again?

[northernladuk]

Post 24 months, could he operate under a new LTD and claim travel expenses all over again?

Please read the guides. This is basic knowledge.

24 months is based on your location NOT your ltd or who you work for or contracts.

As long as you are in the geographical area regardless of how many clients you work for, for 24 months (from date you know of course) the clock is ticking.

Read the guides to the right.

[Clare@InTouch]

I knew a guy (developer) in one of my previous gigs who had been with the client (direct, no pimp) for over eight years as a Ltd co contractor, he was best mates with the current CTO, going back many years working for same client then it got bought out. When asked about IR35, he was very dismissive of it, but I did wonder what would happen if he got investigated. A few years with same client, fair enough but eight years?

qh

I agree that time is neither here nor there for IR35 in most cases.

It does remind me of the whole Dragonfly case though (there was another long one that lost too - Battersby I think) - and whilst I don't think length of contract is a deciding factor, it does make arguing you're not part & parcel of the firm harder, along with lack of MOO. The client would surely get to the point where they just assume you're going to accept a renewal, and you assume they will offer one. This is the extreme though, where you're talking 5 years or longer! And you still have the magic Control & Substitution to fall back on.

[RockyBalboa]

Please read the guides. This is basic knowledge.

24 months is based on your location NOT your ltd or who you work for or contracts.

As long as you are in the geographical area regardless of how many clients you work for, for 24 months (from date you know of course) the clock is ticking.

Read the guides to the right.

So, post 24 months if you could get the contract ammended to reflect another office of the client?

[northernladuk]

So, post 24 months if you could get the contract ammended to reflect another office of the client?

Let me put a bib on you and open your special food so I can feed it to you, there is a good little soldier....

Firstly... It is from the moment you know you are going to be over 24 months. Not POST 24 months. This has been said more than enough times now....

You could get your contract amended to say your new location is up my lilly white ass but if you are not going to travel there it doesn't mean squat. If you continue to travel to your client at the same place you location is still there. It doesn't matter what it says on your contract. If you travel to the same location for more than 40% of the time or 2 years your caught (from the moment you know of course).

If you can change location (physically), out of the geographic area not across the road, then the clock starts again.

Read the damn guides and do a search. Jesus. Why people will not do a bit of research when it comes to potentially falling foul of HMRC I will never know.

I would like to know what the repercussions of changing your contract to not reflect your working situation for personal gain is though. Has to be some legal come back on that surely?