Long Running Contract / IR35

[Ian3Vale]

I have been with the same client for over 3 years () and have been offered a further extension.

As I am in a relatively strong bargaining position I have decided to negotiate the terms of the contract to try and remove any reference to hours, location etc. This is in an attempt to protect myself from IR35.

The agency are suggesting a compromise with wording such as "hours to be agreed between client and contractor representative"

I know that duration of contract is not a specific factor in respect of IR35, however I want to do everything I can to protect myself.

I currently ensure I work off site at least once a week and use my own equipment where possible.

Any thoughts on the proposed compromise - or is it better to stick to my guns and ask for this to be removed?

Many thanks for any help

[Sockpuppet]

Get Bauer & Cotterill or QDOS (i think who do them) to do a contract review.

They are good at negotiating with a client.

The best way to protect yourself is to close down your Ltd after starting a new one.

Then as the company has been closed they cannot clhase your for IR35. If I had a 3 year contract knowing that all of that could become liable that's what I'd do.

[Qdos Contractor]

Whilst the hours and location amendments are handy, this far down the line they aren't going to have a massive impact. If you are changing the contract wording I would concentrate on the right of substitution, as things have changed over the last few months.

In my opinion, the best thing you can do at this point is to get a confirmation of arrangements document signed between your company and the client (not the agency). It will focus on the actual working practices rather than the written terms. This goes some way to negating HMRC's need to interview/obtain statements from the client, which will be a huge benefit to any enquiry.

[deckster]

Echoing what QDOS have said - changing T&Cs at this stage will have no impact. I think it was the Dragonfly case where the commissioners specifically mentioned that a change of clauses at renewal time to bring the contract into line with IR35 was entirely ineffectual. Pure speculation here, but it seems possible to me that such a move could be counter-productive as you are effectively admitting that the previous contract was not IR35 compliant!

[rootsnall]

Pure speculation here, but it seems possible to me that such a move could be counter-productive as you are effectively admitting that the previous contract was not IR35 compliant!

Also speculation but I would suspect closing your Ltd down and opening another to try and disguise the situation wouldn't go down too well if it made it all the way to an investigation and hearing.

This used to be a common debate between the long and short contract brigade but a long contract does leave a big juicy target for the taxman. I'd say move on asap but with jobs thin on the ground the normal rules maybe do not apply.

[Pacciae]

Echoing what QDOS have said - changing T&Cs at this stage will have no impact. I think it was the Dragonfly case where the commissioners specifically mentioned that a change of clauses at renewal time to bring the contract into line with IR35 was entirely ineffectual. Pure speculation here, but it seems possible to me that such a move could be counter-productive as you are effectively admitting that the previous contract was not IR35 compliant!

Get Qdos to review the contract for you, a small price to pay for piece of mind

[BolshieBastard]

In my opinion, the best thing you can do at this point is to get a confirmation of arrangements document signed between your company and the client (not the agency). It will focus on the actual working practices rather than the written terms. This goes some way to negating HMRC's need to interview/obtain statements from the client, which will be a huge benefit to any enquiry.

What does one have in this? Is there a template anywhere?

[Archangel]

What does one have in this? Is there a template anywhere?

I think there is a template on the PCG website.

[Qdos Contractor]

What does one have in this? Is there a template anywhere?

They are available to download if you are a client of ours. If not I can send it to you (PM me).