Client wants work done that falls outside of my current contract (IR35 implications) Client wants work done that falls outside of my current contract (IR35 implications)
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  1. #1

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    Default Client wants work done that falls outside of my current contract (IR35 implications)

    I have a 3 month contract with a client to do a specific piece of work. I am working full time on that contact at the moment, charging an hourly rate.

    Today they have asked me if I could take a break from that work for a few weeks and do something else for them.

    My question is how do I handle this in an IR35 compliant way?

    I guess I could either ask them to amend the current contract to include the other item of work, which sounds a bit messy, or raise another contract for the other item of work to run concurrently with my existing contract.

    What's the best way to handle this situation in an IR35 friendly way?

  2. #2

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    Quote Originally Posted by Tuttle View Post
    I have a 3 month contract with a client to do a specific piece of work. I am working full time on that contact at the moment, charging an hourly rate.

    Today they have asked me if I could take a break from that work for a few weeks and do something else for them.

    My question is how do I handle this in an IR35 compliant way?

    I guess I could either ask them to amend the current contract to include the other item of work, which sounds a bit messy, or raise another contract for the other item of work to run concurrently with my existing contract.

    What's the best way to handle this situation in an IR35 friendly way?
    Statement of Work? The client may look at you as if you're mad, but you could send your understanding of Statement of Work (As agreed, this is our understanding etc...) from your business email address and ask them to confirm.

    No harm in thinking about it, but I wonder how often a 3 month contract is investigated (I guess you may extend though).
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    Quote Originally Posted by Old Greg View Post
    Statement of Work? The client may look at you as if you're mad, but you could send your understanding of Statement of Work (As agreed, this is our understanding etc...) from your business email address and ask them to confirm.

    No harm in thinking about it, but I wonder how often a 3 month contract is investigated (I guess you may extend though).
    I had a 4 month contract with them before this, with only a couple of week's gap in between. Also, I think it is likely that the current contract will be extended as they are coming round to the fact that there is more than 3 months worth of work to do, probably more like 6-9 months.

    The additional work they want me to do now relates to the first contract I had with them, which ended at the end of July.

  4. #4

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    Get the contract schedule or statement of work updated to include the new work. Only then you agree to do it.
    Agency should be fine as this gets them more work than they sold previously.

    It’s also a positive pointer to outside IR35 at that stage even according to the CEST tool (or it was last time I used the tool).
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    Quote Originally Posted by Lance View Post
    Get the contract schedule or statement of work updated to include the new work. Only then you agree to do it.
    Agency should be fine as this gets them more work than they sold previously.

    It’s also a positive pointer to outside IR35 at that stage even according to the CEST tool (or it was last time I used the tool).
    My contract is direct with the client, there is no agency involved.

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    Quote Originally Posted by Tuttle View Post
    My contract is direct with the client, there is no agency involved.
    Then approach client to get it updated or get new contract for this extra work.

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    You just need a simple contract variation that states the additional work being requested, the dates the work will be delivered between, and the price for it.

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    You need to fix the paperwork as all the posts above explain but it is just that. Paperwork. You can't keep doing this too many times else it just looks like the a sham.

    If the client doesnt understand how you work and wants to see you as a resource they can mvoe about as they wish they you are under D&C whatever paperwork you produce.

    Do as the above as a quick fix but take a long look at your current situation. The alarm bells should be deafening. Do you have a IR35 nightmare looming or is this just a one off where a client needs expert focus for a shirt period?
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    I don't know. Larger consultancy companies do work outside of their original statement of work all the time without sending a new statement of work. You can ask them in an email if they can also do x, y, z, they send an email back saying yes that will take an additional 1 day we can do it next friday if you'd like, you send an email back saying okay I approve it can you please do it. They do it and send an invoice.

    I don't really understand why operating the same way as other b2b relationships do would put you under scope of ir35 but i am not a lawyer or accountant.

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    Quote Originally Posted by jayn200 View Post
    I don't know. Larger consultancy companies do work outside of their original statement of work all the time without sending a new statement of work. You can ask them in an email if they can also do x, y, z, they send an email back saying yes that will take an additional 1 day we can do it next friday if you'd like, you send an email back saying okay I approve it can you please do it. They do it and send an invoice.

    I don't really understand why operating the same way as other b2b relationships do would put you under scope of ir35 but i am not a lawyer or accountant.
    That's still a formal exchange. They may have something in the contract that allows them to accept as hoc requests.

    I'd say a request to do a one day task is significantly different to a small project that will take a few weeks. I doubt any consultancy would accept that on the back of an email.

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