Newbie - can I back out of this contract

[Benny Boy]

Hi,

I've been reading this site with great interest and have been worried about a few of the aspects of contracting from day one - particulary IR35.

My first contract has failed IR35 after review - which has lead me to believe contracting is not for me - so intend to look for permanent work. I can't see how I would ever avoid it being a techy monkey in my field of work.

I haven't signed a contract yet - but I have been onsite (employer) to have a security check (which includes various checks at a cost to the company).

As I haven't signed a contract with an agency, I assume I can back out (is a verbal "yes, I'll take the job" a contract?). But I have started the process with having the security checks performed - so what are my rights to reject the contract at this stage. Can they charge me for the checks already performed? I've no idea how much a security check is.

Out of interest...
It's a six month contract - if I didn't pay myself this year - does that affect IR35 in anyway whatsoever.

Thank you for any advice. Hears hoping I'll sleep tonight.

[cojak]

Yes, you can pull out at this stage.

The agent may rant at you but take no notice of the threats, just tell him that your circumstances have changed.

Sleep well tonight and Good Luck for the future

[Gentile]

Yes, you can "back out" at this stage (in actuality, all you'd be doing is choosing not to go ahead, since you've not actually signed anything yet – their having initiated some pre-employment checks isn't a consideration). However, you'll probably be surprised to find when and if you do so, that rather than getting annoyed the agent will mysteriously offer you an increased rate to sign. I don't play games like turning down offers just to get an increase in rate myself, but I know from several experiences of having been in the fortunate position of having multiple offers in hand before that an improved offer is invariably the result of turning down a gig where the client has decided it's you that they want.

Other options you may want to consider include getting the agent to change those parts of the contract that make it a problem for IR35 so that the offer is more appealing to you. It's quite common to have to straighten these contractual clauses out at the pre-signing stage, to ensure all parties to the agreement are happy with arrangements.

Good luck.

[tractor]

..

Hi,

I've been reading this site with great interest and have been worried about a few of the aspects of contracting from day one - particulary IR35.

My first contract has failed IR35 after review - which has lead me to believe contracting is not for me - so intend to look for permanent work. I can't see how I would ever avoid it being a techy monkey in my field of work.

I haven't signed a contract yet - but I have been onsite (employer) to have a security check (which includes various checks at a cost to the company).

As I haven't signed a contract with an agency, I assume I can back out (is a verbal "yes, I'll take the job" a contract?). But I have started the process with having the security checks performed - so what are my rights to reject the contract at this stage. Can they charge me for the checks already performed? I've no idea how much a security check is.

Out of interest...
It's a six month contract - if I didn't pay myself this year - does that affect IR35 in anyway whatsoever.

Thank you for any advice. Hears hoping I'll sleep tonight.

WTS plus it would seem that you have had the contract reviewed already, use your advisors comments to leverage the conversation with the agent, they usually have some leeway with respect to IR35 'friendliness'. They will not be a stranger to these requests for sure. You are likely to find them more than amenable to make reasonable changes. As long as those changes reflect actual working practices, you may well find your contract becomes outside IR35.

Good luck with it.

[BS1397]

I haven't signed a contract yet - but I have been onsite (employer) to have a security check (which includes various checks at a cost to the company).

I am hardly an authority on contracting here but I would suggest that if the Security Checks fail for whatever reason then they will not hesitate to show you the door out, and there is a good chance the Client expects the occasional No-Go anyway, So don't worry about them if you are not happy with the terms, Just simply refuse the work if your interest is compromised.

Sometimes I wish agencies would supply a sample contract with the Job Specs well before the interview stage, that way contractors don't get suddenly pressured into signing a wade of papers in a hurry by return of Email or Fax because you are now expected to start tomorrow morning.

[Wanderer]

Sometimes I wish agencies would supply a sample contract with the Job Specs well before the interview stage, that way contractors don't get suddenly pressured into signing a wade of papers in a hurry by return of Email or Fax because you are now expected to start tomorrow morning.

Good point, but they won't do that because then you would have a chance to READ the contract and they don't want you to do that.... They want you to sign it quick smart and not think too much about what's in it...

[Benny Boy]

Thank you for your replies - very reassuring.

The reason I need to stay out of IR35 this year is because I'm already in the 40% tax bracket due to a nice long service redundancy payout. I was intending to take a salary next year. I think the IR35 states I have to pay myself during the period working.

I have noticed a few newbies on here in the same position - I wonder if we all got redundancy from the same place.

[doomage]

Thank you for your replies - very reassuring.

The reason I need to stay out of IR35 this year is because I'm already in the 40% tax bracket due to a nice long service redundancy payout. I was intending to take a salary next year. I think the IR35 states I have to pay myself during the period working.

I have noticed a few newbies on here in the same position - I wonder if we all got redundancy from the same place.

Make sure you do your numbers. You might still be better off contracting inside IR35 than going perm. Even outside IR35 most contractors take a salary, and if you have to pay some extra tax for one year, so what? It might surprise some people on here, but it's not illegal to pay higher rate tax.