Questions from Agent

[amanwhoisquiet]

I was just sent over a set of questions from the risk soaking company that has been artifically inserted into my chain of contracting on IR35 determination.

Chain is: Me - MyCo - RiskSoakCo - BigConsultCo - Client

Really disappointed with the kinds of questions they're asking - whether I have a business bank account for instance (along with a website/self-promote platform, business premises).

From using variations of the tool before I expect the most heavily weighted question is the one about having 'arranged a substitute to carry out work in my absence' and then paying them via myCo.

I'd heard of some contractors making up some guff £1 each way invoice system, where they make it look like some kind of sub agreement, but I've also heard that this is meaningless.

I personally know enough people in my field that I would be able to find 'someone' at short notice to come and do 'some' of the work I'm in doing and I'm also familiar enough with several pimps to be able to do the same on a wider scale with a longer lead-in.

Does anyone use any more official or formal agreements and arrangements than this? Again, anything I do here feels like it's mostly IR35 theatre.

[malvolio]

Just to be absolutely clear, getting someone in to do some or even all of the work is sub-contracting, not substitution, making it meaningless as an IR35/employee qualifier.

The substitution in IR35 case means you bringing in someone to operate the entire contract as it stands in place of you, operating through the same company, and subject to the same rates, conditions, terms and conditions and all. The only decision is how much of your existing agreed rate they get paid, and that is between the two of you and will not form part of the original contract..

If your risk-soaker doesn't understand that, then I would really question their competence.

[JohntheBike]

I was just sent over a set of questions from the risk soaking company that has been artifically inserted into my chain of contracting on IR35 determination.

Chain is: Me - MyCo - RiskSoakCo - BigConsultCo - Client

Really disappointed with the kinds of questions they're asking - whether I have a business bank account for instance (along with a website/self-promote platform, business premises).

From using variations of the tool before I expect the most heavily weighted question is the one about having 'arranged a substitute to carry out work in my absence' and then paying them via myCo.

I'd heard of some contractors making up some guff £1 each way invoice system, where they make it look like some kind of sub agreement, but I've also heard that this is meaningless.

I personally know enough people in my field that I would be able to find 'someone' at short notice to come and do 'some' of the work I'm in doing and I'm also familiar enough with several pimps to be able to do the same on a wider scale with a longer lead-in.

Does anyone use any more official or formal agreements and arrangements than this? Again, anything I do here feels like it's mostly IR35 theatre.

It looks like there will be a similar chain for me shortly. I'll advise the position of RiskSoakCo when I know more. What I do know is that RiskSoakCo have indicated that they will be assessing each contract individually and that a questionnaire will be sent out soon to help them assess each contract. They have also stated that they will not be using CEST, which is encouraging.

[amanwhoisquiet]

Just had another chat with them.

Options for inside would be

go FTC with RiskSoakCo
go perm with RiskSoakCo (deals to be finalised when it looks likely i'd accept something like this)
go Umbrella with no my own choice of Umbrella. (with same gross rate as now I think - no uplift at least)

for outside there'd be no changes.

They've also not used CEST, but are not totally finished either so I'm still in the dark. Curiously though, they've indicated that the Client either won't or can't make the determination themselves which is why they're doing it. It's a funny one, because while they wrote the contract, they know almost nothing about my working practices. I also thought it 'had' to be the client making the call on the status.

They've said client is keen to re-engage for my work, but on the inside options I'm probably not interested. If it's outside then I probably will - even though the work's not that great. At least an extension would get me through to summer when some of this dust has settled.

[northernladuk]

Sounds a very poor state of affairs to me. The client is letting the agency make a determination in their behalf when they will know nothing about what the client will accept and the working practices. I'd seriously consider walking away from that one, particularly if you've got some time in already at the client.

I wouldn't trust the agency to make any other determination than the one that suits them. My guess is they'll give the best option to keep you.

On a side note. If you've got a good warchest and can pick your umbrella then Clarity and their open pension offering could be very tax efficient.