IR35 and Contract Wording

[JJ]

My contract with an agency contains the following wording, it has name of Contractor and name of Consultant included in the details, does this get me outside IR35 ?
With the Clients prior agreement the Contractor will supply to the Client of the Company the services of the Consultant or such other suitably qualified and experienced person as nominated by the Contractor and notified to the Company for the specified period.

[FamosAmos]

Refer to this...

www.namesfacesplaces.com/...hotopage=0

[fiddleabout]

8. Make sure that you register for VAT and that your contract states that it will be added. This will distinguish you from an employee, as they NEVER charge VAT on top of their salaries.

This is a completely new one on me. It's all a bit simplistic too. The most important piece of advice seems to be missing - if in doubt ask a professional but never ever ever ask the revenue.

[Simon SJDaccountancy]

IR35

Quote:

"7. Give your client company the right of refusal for any substitute that you offer."

This is one thing that is sure to negate the substitution clause and go a long way toward taking you inside IR35.

"8. Make sure that you register for VAT and that your contract states that it will be added. This will distinguish you from an employee, as they NEVER charge VAT on top of their salaries."

This is absolutely irrelevant to IR35.

I think Gerrys career as a tax adviser is likely to be short lived.

Gerry, it might be an idea if you get your articles checked for accuracy - if people rely on these things they will really come unstuck.

[NamesFacesPlaces]

Fernley

They all came straight from the Lisa Fernley judgment.

I was simply passing them on.

[Simon SJDaccountancy]

IR35

Your reading of the judgement then is entirely wrong.

[fiddleabout]

Re: IR35

The IR say the substitution clause should be unfettered - giving the end-user a cop-out makes it fettered.

IMO a fully unfettered clause would be unworkable in practice (so could be challenged on that) - if I decided to use a transvestite skinhead with tattoos on their forehead as my substitute I think even if they had the necessary qualifications the client might object.

Simon - I liked your rider to the substition clause adding "such approval not to be unreasonably withheld" to the "with the approval of the end user" - my latest contract has that now.

I don't see how a dodgy substitution clause can put you in - surely it only doesn't help in getting you out ?

[zeitghost]

Re: IR35

On one memorable contract, I met a transvestite RF engineer who was on the way to the full plumbing job.

Scarey.

Wasn't a handsome man & certainly wouldn't make a pretty woman.

Poor git.

[NamesFacesPlaces]

Lisa

"Your reading of the judgement then is entirely wrong."

I wasn't interpreting it. I was pretty much quoting from it.

[Vetran]

Re: Lisa

Fiddle they may find a tattoed transvestite a welcome alternative

Apparently there is a very high population of them working in a certain telecoms company in Ipswich. Allegedly.