Hi,
I recently had "the IR35 chat" with my current main client (I do freelance work for other clients but this one I work with on-site on a 5 days a week basis). They are fairly small and don't usually work with a large number of contractors, but are big enough to meet the medium-or-large size company test. I spent some time explaining to them exactly what is changing and why it's important for both of us to understand this and be happy with whatever decision is made.
My contract has already been reviewed twice by two different companies for compliance and passed (with some changes to the initial contract that the client was happy to make, but no changes required the second time), and I make efforts with my working practices to be outside IR35. I've never had the need to supply a substitute, but when I spoke to the client about it they said that in theory they'd be happy with this - although my work is quite specialised (software development using a fairly unique stack of technologies) so it would be quite hard for me to find a suitable substitute to put this into practice (if it were simpler, I would definitely ask if I could send a substitute for a few days just to "tick this box").
After discussing the upcoming changes, the client agreed that they are happy that the terms of our engagement are outside IR35, and they are happy to provide me with whatever documentation is required (and for me to undertake whatever steps are necessary with regard to working practices to ensure this is really the case), so if I'm able to get this documented in as watertight way as possible, I'm happy to continue working with them.
The difficulty I'm having is working out exactly what documentation is required! As with many of these IR35 things, it seems a bit fuzzy....
It sounds like the key "legal" document is the Status Determination Statement, an example of which I've found at https://www.qdoscontractor.com/docs/...t-template.pdf. Are there any other examples of these out there? I'd expected it to be an official HMRC form to complete, but looks like it is more "ad-hoc".
If I were to present the example from that template, modified to meet any specifics of my situation, to my client for them to base their assessment on (i.e. for them to read, confirm they are happy with and sign), would that be sufficient? Or do I need to ensure they go via a third party to create a bespoke assessment for it to be watertight, in which case can anyone recommend someone able to provide this service for a reasonable fee? Or would the HMRC CEST tool suffice? Or do I need to wait until nearer the April 2020 date before asking them to provide this? As with much IR35 related stuff, it's hard to tell what is actually required, and what is just companies online trying to make a fast buck out of people's fears!
One other piece of documentation that is referenced a lot and my client would also be happy to sign is a confirmation of arrangements letter - is this still worth having? Again, I was going to base this on the QDos template at Confirmation of Arrangements - IR35 Resources - Qdos Contractor - there's also one IPSE provide at https://www.ipse.co.uk/uploads/asset...fae75f7d27.pdf but I found the QDos one clearer and seemed to cover more.
Any other recommendations on how I can solidify my outside status, either in terms of documentation or working practices, given that the client is on board and happy to do what is required, would be much appreciated.
Thanks!
I recently had "the IR35 chat" with my current main client (I do freelance work for other clients but this one I work with on-site on a 5 days a week basis). They are fairly small and don't usually work with a large number of contractors, but are big enough to meet the medium-or-large size company test. I spent some time explaining to them exactly what is changing and why it's important for both of us to understand this and be happy with whatever decision is made.
My contract has already been reviewed twice by two different companies for compliance and passed (with some changes to the initial contract that the client was happy to make, but no changes required the second time), and I make efforts with my working practices to be outside IR35. I've never had the need to supply a substitute, but when I spoke to the client about it they said that in theory they'd be happy with this - although my work is quite specialised (software development using a fairly unique stack of technologies) so it would be quite hard for me to find a suitable substitute to put this into practice (if it were simpler, I would definitely ask if I could send a substitute for a few days just to "tick this box").
After discussing the upcoming changes, the client agreed that they are happy that the terms of our engagement are outside IR35, and they are happy to provide me with whatever documentation is required (and for me to undertake whatever steps are necessary with regard to working practices to ensure this is really the case), so if I'm able to get this documented in as watertight way as possible, I'm happy to continue working with them.
The difficulty I'm having is working out exactly what documentation is required! As with many of these IR35 things, it seems a bit fuzzy....
It sounds like the key "legal" document is the Status Determination Statement, an example of which I've found at https://www.qdoscontractor.com/docs/...t-template.pdf. Are there any other examples of these out there? I'd expected it to be an official HMRC form to complete, but looks like it is more "ad-hoc".
If I were to present the example from that template, modified to meet any specifics of my situation, to my client for them to base their assessment on (i.e. for them to read, confirm they are happy with and sign), would that be sufficient? Or do I need to ensure they go via a third party to create a bespoke assessment for it to be watertight, in which case can anyone recommend someone able to provide this service for a reasonable fee? Or would the HMRC CEST tool suffice? Or do I need to wait until nearer the April 2020 date before asking them to provide this? As with much IR35 related stuff, it's hard to tell what is actually required, and what is just companies online trying to make a fast buck out of people's fears!
One other piece of documentation that is referenced a lot and my client would also be happy to sign is a confirmation of arrangements letter - is this still worth having? Again, I was going to base this on the QDos template at Confirmation of Arrangements - IR35 Resources - Qdos Contractor - there's also one IPSE provide at https://www.ipse.co.uk/uploads/asset...fae75f7d27.pdf but I found the QDos one clearer and seemed to cover more.
Any other recommendations on how I can solidify my outside status, either in terms of documentation or working practices, given that the client is on board and happy to do what is required, would be much appreciated.
Thanks!
Comment