bonus and ir35

[jim2406]

g'day

my first question here, so be gentle...

i have a question regarding ir35 status. i have been at my current (and first!) contract for 8 months now, and the current project has a bonus scheme in place for both contractors and permanent staff (the stakeholders have a very very keen interest in it being done on time, so have put their money where their mouth is, so to speak)

the bonus scheme is significant (could be approaching a 5 figure sum) so i am keen to obtain my cut!

I have declared my relationship with the client to be outside of IR35, based on my understanding of the ruling. i work flexible hours, provide my own kit, have MOO, right of substitution etc. in contract (MOO has come into play on more than one occasion during quiet periods), immediate notice period, rectify own mistakes, etc. also it's a direct contract (no agent) which is nice.

my question is, would anyone have any idea as to how i could claim the bonus without jeopardising my ir35-comfortable status? could i just invoice for it? how would this look in the light of an investigation? the documentation regarding the bonus makes a clear distinction between permanent members of staff and contractors, but says both are eligible. the bonus is very much based on the delivery and acceptance of a particular piece of work.

there are some other contractors in the team who have been having similar thoughts, but no-one seems to have an answer yet.

thanks
jim

[The Lone Gunman]

No agent = No IR35. End of conversation.

[malvolio]

No quite that simple, actually, but pretty close in effect. If you have a direct contract with the end client, demonstrable lack of MOO with proof, RoS and the rest, you are non-IR35 as you can get.

The bonus issue actually supports that position - you stand to make a financial loss if you don't deliver to the required standard.

If you ignore the word "bonus", and consider the potential lack of a that payment as a penalty clause, it all becomes clear.

[tim123]

The bonus issue actually supports that position - you stand to make a financial loss if you don't deliver to the required standard.

This would be true is the bonus is paid based upon his performance, but it isn't, it's potentially paid on the basis of someone elses.

He could work like a trooper and not get it because someone else stuffs up. Or he could be a lazy git and get it because everyone else performs above expectations.

tim

[jim2406]

the bonus is lump sum + discretionary (based upon how much effort each of the team is perceived to have made in hitting the deadlines)

how would you invoice for this? i was thinking 'project completion fee' or similar

[rootsnall]

No agent = No IR35. End of conversation.

The most 'disguised' employees I've ever come across were long long term direct contractors at Co's they have previously worked for as permies. NI dodging at its finest and I would think struggling if the IR catch up with them. One guy I know tries to get round it by working via POs and invoices every blue moon but he manages permies and has been there for years !!!