Procurement contract/IR35

[zafoeta]

Hi

Some contractors approached me to start up a consultancy business. The idea being that the existing company we all are contractors for could become the first client.
The idea would be to get a new procurement contract - very hard to say what the wording would be, as this is all just talks for now.

One question that pops up is if there is a chance that this contract could fall under IR35? Is the fact that we would not work under a PSC anymore any advantage in terms of ir35 status?
I guess we would still charge on a daily rate per head, like many consultancy businesses do, so can't quite see a big difference to the current individual set-up.

Thoughts?

Thanks

[malvolio]

For a start, it's called the "Imtermediaries" legislation so it won't have any effect on individual contracts.

However, although a good idea, it is a minefield. Do a lot more reading and research and look up some horror stories before you go to far. If you can make it work then fine, of course, but this particular business model doesn't usually last....

[northernladuk]

I'd hazard a guess that nearly every new contractor has had this idea. The fact there are so few of these about is the proof of the pudding really. A group of contractors does not make a stable business that would even get past the first round of a tender or on ant decent PSC.

Then there is the issue that you are all contractors. What happens when work doesn't appear immediately or one of you isn't required for the work your win etc.

You need to put a lot more work in to the idea that you have so far I am afraid. The fact you don't even understand your engagement model isn't the best start.

And it's no 'under' IR35. It's inside or outside.