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Can a security-cleared contract be outside IR35

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    Can a security-cleared contract be outside IR35

    Was talking about this with a someone at clientco earlier, and it seems to me that any security-cleared contractor must be bang-to-rights inside IR35, as they obviously can't claim the right of substitution.

    Even in the unlikely event they could claim as a substitute some other contractor, security-cleared to at least the same level, would any organisation demanding security clearance ever consent to a condition like that even in theory?

    Or is substitution not always a completely conclusive open-and-shut indicator of being IR35-caught? (I am pretty sure it is.)
    Work in the public sector? Read the IR35 FAQ here

    #2
    The right to substitution surely belongs to your limited, not the individual.
    "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

    Comment


      #3
      Originally posted by scooterscot View Post

      The right to substitution surely belongs to your limited, not the individual.
      Of course, but security clearance is obviously associated with the individual. That's the point.
      Work in the public sector? Read the IR35 FAQ here

      Comment


        #4
        Originally posted by OwlHoot View Post
        Was talking about this with a someone at clientco earlier, and it seems to me that any security-cleared contractor must be bang-to-rights inside IR35, as they obviously can't claim the right of substitution.

        Even in the unlikely event they could claim as a substitute some other contractor, security-cleared to at least the same level, would any organisation demanding security clearance ever consent to a condition like that even in theory?

        Or is substitution not always a completely conclusive open-and-shut indicator of being IR35-caught? (I am pretty sure it is.)
        Until April next year you need one of SDC, substitution or no mutual obligation to be outside ir35. I would guess that a lack of mutual obligation would be the escape route
        merely at clientco for the entertainment

        Comment


          #5
          Originally posted by eek View Post

          Until April next year you need one of SDC, substitution or no mutual obligation to be outside ir35. I would guess that a lack of mutual obligation would be the escape route
          Sorry to sound thick, but what is due to change in April next year?
          Work in the public sector? Read the IR35 FAQ here

          Comment


            #6
            Originally posted by OwlHoot View Post
            Sorry to sound thick, but what is due to change in April next year?
            Changes to public sector contracting.
            'CUK forum personality of 2011 - Winner - Yes really!!!!

            Comment


              #7
              I think you can still have the option to provide a substitue. The fact the client has restrictions shouldn't mean you are immediately inside. You can find some that has SC that's not lapsed and get it transferred or even have your sub put through the whole process. That's the clients problem. You can still exercise the right.

              I believe if is not tested the defence is that fully expect it to be honoured. If the client turns round and says they wouldn't then you are screwed. Sometimes it's better off not asking.
              'CUK forum personality of 2011 - Winner - Yes really!!!!

              Comment


                #8
                Erm... All of mine were...

                The clearance rules apply to everyone, regardless of permie or contractor, so how can they be relevant to you being a disguised employee or not? OK, they also apply to your substitute, but that doesn't impact your RoS other than by a totally reasonable requirement that they also be clearable.

                From next year though, anyone taking on a PS rile, cleared or not, is going to have a serious problem with IR35. You should be a lot more concerned about that.
                Blog? What blog...?

                Comment


                  #9
                  Originally posted by malvolio View Post
                  Erm... All of mine were...

                  The clearance rules apply to everyone, regardless of permie or contractor, so how can they be relevant to you being a disguised employee or not? OK, they also apply to your substitute, but that doesn't impact your RoS other than by a totally reasonable requirement that they also be clearable.

                  From next year though, anyone taking on a PS rile, cleared or not, is going to have a serious problem with IR35. You should be a lot more concerned about that.
                  So, don't supply your services to the Public Sector!

                  Simples!

                  Given the generous Civil Service pensions, you soft twats should go permy!

                  Spod - In "supplying military services via a private sector organisation for the past 5 years" mode!

                  Comment


                    #10
                    Originally posted by northernladuk View Post
                    . You can find some that has SC that's not lapsed and get it transferred or even have your sub put through the whole process. That's the clients problem. You can still exercise the right.
                    .
                    If the substitute is only there for a short period of time the clearance wouldn't even need to be transferred. As long as the security controller is satisfied the clearance is valid for the time they were on site.

                    For example when I was a permie and worked at another companies site for several months my employer at the time didn't transfer my clearance to the other company.

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