Contract does fall within IR35 according to accountant

[Tasslehoff]

Start a new gig next week. Contract not signed yet.

Accountant offered to IR35 review my contract. Came back today saying it DOES fall within IR35.

This was a free service and is the accountant opinion. I do find it strange as it is a stock contract from one of the big recruiters (Parity)

What is my next step (obviously I have contacted my accountant to ask the same question NLUK) and I allready have PCG plus insurance.

I am not sure how willing my agent will be to re-write the contract as I say it's "stock" and they must fire off dozens of them a day.

Can I carry on as if I was not within IR35 as my working practices are 100% clear to me that I am not a disguised employee. Not sure what I should be doing next.

[MyUserName]

You can carry on doing anything you want! The risk is all yours.

However, if the contract is within IR35 then HMRC will probably not consider the working practices and will just nail you on the contract (I am guessing).

Get the contract reviewed by an IR35 expert like QDOS and tell the agent that you cannot accept it until he has made any changes that they advise.

Do not worry about the agent, he would have gone through this before.

[northernladuk]

Accountants do your accounts and are not contract specialists. Get QDOS or B&C to do it properly. B&C do offer to negotiate the contract on your behalf but agents are often not willing to change their contracts as they would have to get the changes legally checked to make sure it doesn't open themselves to risk. This takes time and money so will often flatly refuse changes.

The fact your accountant offered and that you didn't go get it done properly is a bit of a worry though.

Exactly why did the agent believe it to be inside? Whatever the answer is get QDOS or B&C to do it properly. I am sure these guys know something about accounting but you wouldn't let them run your company finances if you see what I am getting at.

[northernladuk]

Hang on, aren't you with an Umbrella? If that is the case the IR35 status doesn't matter.

[Tasslehoff]

Hang on, aren't you with an Umbrella? If that is the case the IR35 status doesn't matter.

I went limited last contract (good memory though!)

[craig1]

There's an easy way to do it once you've done all that the esteemed posters above have suggested:

1. Take an income (salary, dividends, whatever) as if you're 100% outside of IR35.
2. Calculate how much you'd take home net if IR35 did apply, take the difference between the point above and this point and stick it in the highest interest savings method possible.
3. If you've had no HMRC income tax query on it after seven years it's yours! Just think of it as an extra unexpected bonus.
4. If you do get a HMRC query, call in your insurance (you do have insurance, don't you?) and sit back comfortably knowing that even in the worst of scenarios that you have the cash to pay the bill.

I do that anyway just in case I'm ever at the tail end of a seriously irrational set of decisions and court outcomes.

[Tasslehoff]

If my agent flat out refuses to change clauses I am guessing the only option is to walk?

Very odd because that would mean dozens possibly hundreds of other people are in the same boat as me.

[Andy Hallett]

What are the clauses you want changed?

[Tasslehoff]

Accountants do your accounts and are not contract specialists. Get QDOS or B&C to do it properly. B&C do offer to negotiate the contract on your behalf but agents are often not willing to change their contracts as they would have to get the changes legally checked to make sure it doesn't open themselves to risk. This takes time and money so will often flatly refuse changes.

The fact your accountant offered and that you didn't go get it done properly is a bit of a worry though.

Exactly why did the agent believe it to be inside? Whatever the answer is get QDOS or B&C to do it properly. I am sure these guys know something about accounting but you wouldn't let them run your company finances if you see what I am getting at.

The review said that all 3 clauses were present. So therefore it fell within IR35?

[doodab]

If my agent flat out refuses to change clauses I am guessing the only option is to walk?

Not at all. You could also take the contract, keep your existing payment structure, and live with or mitigate the risk of an investigation, or take the contract and cough up the NI.