IR35 in a contract with agency IR35 in a contract with agency
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  1. #1

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    Default IR35 in a contract with agency

    Hi

    I am new to world of contracts so this may seem as a silly question but I need someone's help.

    The agency that found a contract role for me put a clause in the contract in which I confirm I am within IR35 and that my business is a personal service company which is compliant in all respects with the IR35 Legislation.

    Does it make from an agency perspective any difference as to whether I am or I am not within IR35? I would rather not state this in the contract and argue my case with HRMC directly. Can an agency impose such a statement on me?

    Thanks

    Jo

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    Hi Jo,

    This isn't a silly question at all, it's an alarming one.

    This is a very new development and has no place in a contract.

    I would contact Bauer & Cotterall who will review the contract and negotiate that clause out of the contract. If this is your 1st contract I would rely on someone who knows a dodgy contract when they see one.

    It will cost you but many of us do this anyway.

    Also go to the PCG website and join up with them, they have a legal helpline should you want to talk to someone about this.

  3. #3

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    Quote Originally Posted by joanna View Post
    The agency that found a contract role for me put a clause in the contract in which I confirm I am within IR35 and that my business is a personal service company which is compliant in all respects with the IR35 Legislation.
    Is this public sector work? My initial reaction to this is your client has some sort of (politically motivated?) mandate to ensure its personal service company contractors all operate under the IR35 rules. IR35 talks about control, MOO, etc - but having the client determine how the contractor must must tax his/her own business income is insane.
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    Quote Originally Posted by Greg@CapitalCity View Post
    Is this public sector work? My initial reaction to this is your client has some sort of (politically motivated?) mandate to ensure its personal service company contractors all operate under the IR35 rules. IR35 talks about control, MOO, etc - but having the client determine how the contractor must must tax his/her own business income is insane.
    WGS. Some people are over-reacting to a situation that is actually irrelevant. While it makes for a fun blog entry ( ), the reality is actually very serious and needs to be stamped on. Hard.
    Blog? What blog...?

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    Quote Originally Posted by joanna View Post
    Does it make from an agency perspective any difference as to whether I am or I am not within IR35? I would rather not state this in the contract and argue my case with HRMC directly. Can an agency impose such a statement on me?

    Personally, I'd just refuse point blank to accept the contract. A lot of other contractors would do the same. Who is the agency?

    If a contract falls under IR35 like this then it's most likely bound by the Agency Workers regulations too. How do they stand on the AWR?

  6. #6

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    I had this problem a couple of years ago. I queried the contract and had a very red-faced agent apologise for sending me the wrong contract. No big issue and the correct version was e-mailed to me immediately.

    So it's possible that it's just a cock-up. Query it and see how they respond.

    I would contact Bauer & Cotterall who will review the contract and negotiate that clause out of the contract. If this is your 1st contract I would rely on someone who knows a dodgy contract when they see one.
    Totally agree with this. If I am not using a contract that I have written (usually from the PCG template) then I always have B&C review it.

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    Let us know how you get on Jo.

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    Hi

    Thanks all for your responses. Unfortunately, the agency said I sign this contract or get nothing as they do not work on any other basis and there is no scope for negotiation of the contract.

    Beggars are not choosers I am afraid.

    Thanks

    Jo

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    That is almost certainly utter rot, Jo. It's more like that they know that you are knew to contracting and are trying to bully you.

    Can you tell us who the agency is?

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    Quote Originally Posted by joanna View Post
    Hi

    I am new to world of contracts so this may seem as a silly question but I need someone's help.

    The agency that found a contract role for me put a clause in the contract in which I confirm I am within IR35 and that my business is a personal service company which is compliant in all respects with the IR35 Legislation.

    Does it make from an agency perspective any difference as to whether I am or I am not within IR35? I would rather not state this in the contract and argue my case with HRMC directly. Can an agency impose such a statement on me?

    Thanks

    Jo
    Does it actually say you are operating within IR35? You can comply with all aspects of the legislation from outside.

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