Thinking of contracting a few questions though.....

[curtis]

I would like to go contracting and I would like to setup a Ltd company but I am worried about the implication of IR35.

When speaking to agencies about jobs do they tend to have standard contracts that they send out and should I be asking them if their contracts are inside or outside IR35? I know they should be checked independently anyway but is this a question that I should be asking an agent to start with.

I have read articles stating you can negotiate your contract to make it better for IR35 but why would a lot of agencies bother with negotiations on contracts when they could just pick up the phone and speak to someone else who will take it unless its a very specilized job. What are peoples experiences of agencies and their contracts. Do most agencies want their contracts to be as far from IR35 as poss as they know a lot of people with Ltd companies will want this?

Also in regards to Ltd/umbrella, if for example a lot of my contracts were to fall inside IR35 would I still be financially better off with a Ltd company than under an umbrella?

[Ardesco]

I would like to go contracting and I would like to setup a Ltd company but I am worried about the implication of IR35.

When speaking to agencies about jobs do they tend to have standard contracts that they send out and should I be asking them if their contracts are inside or outside IR35?

Outside

I have read articles stating you can negotiate your contract to make it better for IR35 but why would a lot of agencies bother with negotiations on contracts when they could just pick up the phone and speak to someone else who will take it unless its a very specilized job. What are peoples experiences of agencies and their contracts. Do most agencies want their contracts to be as far from IR35 as poss as they know a lot of people with Ltd companies will want this?

some are flexible and some aren't. most contractors will want to be outside IR35.

Also in regards to Ltd/umbrella, if for example a lot of my contracts were to fall inside IR35 would I still be financially better off with a Ltd company than under an umbrella?

Always financially better off with a LTD.

[curtis]

Sorry maybe I was not too clear...I know ideally contracts need to be outside rather than inside IR35 but the contracts that agents send out are they most of the time pretty standard and you will see the same kind of clauses in most or do they vary a great deal, should I be asking an agent about the contract and how it stands IR35 wise.

Also should there be any other questions I should be asking an agent in regards to the contract etc other than the obvious, rate, job spec, location.

[TheFaQQer]

When speaking to agencies about jobs do they tend to have standard contracts that they send out and should I be asking them if their contracts are inside or outside IR35?

They will all tell you that they are outside IR35, because that is what you want to hear. That doesn't mean one thing or another, though.

I have read articles stating you can negotiate your contract to make it better for IR35 but why would a lot of agencies bother with negotiations on contracts when they could just pick up the phone and speak to someone else who will take it unless its a very specilized job. What are peoples experiences of agencies and their contracts. Do most agencies want their contracts to be as far from IR35 as poss as they know a lot of people with Ltd companies will want this?

Most agencies will try an outside IR35 contract, since that's what contractors want. Some will negotiate better than others - I was told on one job that they wouldn't negotiate, I said I'd walk, they changed their mind.

Also in regards to Ltd/umbrella, if for example a lot of my contracts were to fall inside IR35 would I still be financially better off with a Ltd company than under an umbrella?

If you're going to be contracting for more than a year, then Ltd is better. Umbrella might be OK if you aren't going to contract for long, but Ltd will be better financially anyway. Ltd shouldn't go bust and disappear with your money, either.