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IR35 agency contract

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    IR35 agency contract

    Afternoon,

    I won't re-iterate my position everytime (http://forums.contractoruk.com/accou...-expenses.html) as I'm hoping to become regular on here. All to say I'm new but hopefully doing my homework.

    Couple of questions about IR35 and the contracts.

    1) Being a bit cheeky - I asked the agency whether I could see the contract (without rates) between them and the client to check for IR35. Obviously they refused as it's commercially sensitive but the lady did check, so nearly got there.
    Without that information, is there any way to practically mitigate the risk of their contracts not being IR35 compliant (substitution etc) other than insurance and PCG?

    Obviously HMRC look at working practices etc as well as the contract but wondered if there's a trick I'm missing around that chain of contracts from you to client or, more specifically, the agency to the client.

    2) When I join the PCG I'm looking forward to looking at their contracts (sad but true) to understand a bit more about the workings of an IR35 compliant contract. Has anyone seen any other resources they can point me to for PM contracts/ working practices relating to IR35?

    I'm a PM (sorry) but most roles I've seen through agencies are still on a time basis and running possibly running multiple projects, rather than for one distinct project. In essence they want you to do whatever comes your way during that time.
    It would seem the single project is much more dependable for IR35 investigation but the reality of the commercial aspect is that you're likely to get more projects to run concurrently which didn't exist when you took the contract, or the project may change as you go through the planning stages.

    Is there any way to allow for this - it looks to me like there will always be an aspect of permie from the working practices about it unless you take one contract per project (possibly running concurrently), which is unlikely.

    3) To check one last time. Don't opt out of 2003 act. Frankly ignore AWR if truly contracting.

    Many thanks as always.

    #2
    Originally posted by beardedfool View Post
    Afternoon,

    I won't re-iterate my position everytime (http://forums.contractoruk.com/accou...-expenses.html) as I'm hoping to become regular on here. All to say I'm new but hopefully doing my homework.

    Couple of questions about IR35 and the contracts.

    1) Being a bit cheeky - I asked the agency whether I could see the contract (without rates) between them and the client to check for IR35. Obviously they refused as it's commercially sensitive but the lady did check, so nearly got there.
    Without that information, is there any way to practically mitigate the risk of their contracts not being IR35 compliant (substitution etc) other than insurance and PCG?
    Nope.

    It does help if the client is clear that you are a contractor and doesn't treat you like a permanent member of staff.

    Originally posted by beardedfool View Post
    Obviously HMRC look at working practices etc as well as the contract but wondered if there's a trick I'm missing around that chain of contracts from you to client or, more specifically, the agency to the client.
    Apart from IR35 some agencies put sneaky clauses into contracts suitably legally worded for example making you personally liable for any mishap that could happen and dodgy termination clauses. Your best bet is to learn to understand contracts clauses then get any dodgy clauses reviewed by a solicitor and rewritten.

    Originally posted by beardedfool View Post
    2) When I join the PCG I'm looking forward to looking at their contracts (sad but true) to understand a bit more about the workings of an IR35 compliant contract. Has anyone seen any other resources they can point me to for PM contracts/ working practices relating to IR35?

    I'm a PM (sorry) but most roles I've seen through agencies are still on a time basis and running possibly running multiple projects, rather than for one distinct project. In essence they want you to do whatever comes your way during that time.
    It would seem the single project is much more dependable for IR35 investigation but the reality of the commercial aspect is that you're likely to get more projects to run concurrently which didn't exist when you took the contract, or the project may change as you go through the planning stages.

    Is there any way to allow for this - it looks to me like there will always be an aspect of permie from the working practices about it unless you take one contract per project (possibly running concurrently), which is unlikely.
    Get the schedule rewritten by a lawyer.

    Originally posted by beardedfool View Post
    3) To check one last time. Don't opt out of 2003 act. Frankly ignore AWR if truly contracting.
    .
    Yep.
    "You’re just a bad memory who doesn’t know when to go away" JR

    Comment


      #3
      Perfectly succinct, thanks SueEllen

      Comment


        #4
        Hi,

        When you appoint an accountant they should be able to help you deal with most of these points also. Find yourself a designated accountant then you will be able to build a relationship with them and they can help give you guidance too.
        http://uk.linkedin.com/pub/dan-moss/18/18/105

        Comment

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