Does this look OK, is it comprehensive or would you add/remove anything?
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Dear [Client Co director]
[Client Co]’s contract with [MyCo] Ltd is due to expire on Oct 1st. We understand that contract negotiations can take time, so I felt it necessary to contact you now, with only 4 weeks left on the current agreement.
The following is important, should [Client Co] wish to engage further services.
The government is introducing changes into U.K. law that we all need to be aware of, so I thought it best to discuss sooner rather than later. These changes are the Intermediaries Legislation (otherwise known as “off-payroll working rules” or “IR35”) and will be introduced by government in April 2020 but can impact agreements arranged prior to this.
This new legislation will apply to all consultants working in the private sector from April 2020 onwards. The law is already in place within the Public Sector. I expect that the legal team at [Client Co] are already aware.
With regards to:-
- [MyCo]’s contract
- its actual working conditions and
- the HMRC-administered CEST test (please refer to the legal team about this)
its employment status is clearly outside of the Intermediaries Legislation and so does not fall within the remit of IR35. It is important that [Client Co] are aware of this because it is they who must report each consultant’s employment status to HMRC, come April 2020. Any contracts or payments that span close to April 2020 will be in scope of review.
I would welcome the opportunity to discuss this further either with yourselves, or with the legal team at [Client Co] prior to any new contracted work being arranged.
Director,
[MyCo] Ltd
-------------------------------
Dear [Client Co director]
[Client Co]’s contract with [MyCo] Ltd is due to expire on Oct 1st. We understand that contract negotiations can take time, so I felt it necessary to contact you now, with only 4 weeks left on the current agreement.
The following is important, should [Client Co] wish to engage further services.
The government is introducing changes into U.K. law that we all need to be aware of, so I thought it best to discuss sooner rather than later. These changes are the Intermediaries Legislation (otherwise known as “off-payroll working rules” or “IR35”) and will be introduced by government in April 2020 but can impact agreements arranged prior to this.
This new legislation will apply to all consultants working in the private sector from April 2020 onwards. The law is already in place within the Public Sector. I expect that the legal team at [Client Co] are already aware.
With regards to:-
- [MyCo]’s contract
- its actual working conditions and
- the HMRC-administered CEST test (please refer to the legal team about this)
its employment status is clearly outside of the Intermediaries Legislation and so does not fall within the remit of IR35. It is important that [Client Co] are aware of this because it is they who must report each consultant’s employment status to HMRC, come April 2020. Any contracts or payments that span close to April 2020 will be in scope of review.
I would welcome the opportunity to discuss this further either with yourselves, or with the legal team at [Client Co] prior to any new contracted work being arranged.
Director,
[MyCo] Ltd
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