Written Substitution Agreement.....needed?

[grohldman]

Hi,

Apologies if this is a repeat question.

I have a substitution clause in my current contract, but, to be super watertight, is it worth having a written agreement between myself and my chosen substitute. I have someone that is fully capable and willing to be a sub if required so I'm wondering if a written agreement is worth establishing prior to any potential IR35 investigation, and if so, are there any standard templates that can be used.

Thanks!!

[northernladuk]

It has been discussed a number of times and no it won't help and there are no templates for that reason.

Use the search method to have a look for the threads. Use the google method by typing something like the following in to google.

substitution site:contractoruk.com/forums

[eazy]

Subject : Subsitution agreement

Post April 6th, these agreement letters lose lot of relevance as it is the end client who is determining your contract status via SDS. If your contract is declared outside IR35, the risk is with the fee payer / end client. If declared inside, substitution agreements are unnecessary going forward.

Historically these would have carried more weight if you also had a signed client confirmation letter about your working practices. In any case, I have copied below an agreement I used about 10 years ago.

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SUBJECT : SUBSITUTION AGREEMENT

Dear John,

This company provides XXX Design services to a number of clients in the UK.

Whilst we currently have the necessary skills in house to provide these services, we are making contingency plans to cater for the unavailability of staff due to sickness, holidays, or pressure of other work. We are familiar with the services offered by your company and we are writing to ask whether, in principle, you would be interested in a short term sub-contract, possibly at short notice, at some time in the future.

If you are interested we would be grateful if you would sign below and return one copy of this letter.


Yours sincerely



A. N. Other
Director - ABC Ltd


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In the event that you require our services for a short term assignment at short notice we would, in principle be willing to provide the services described at a rate of £xx per hour. This is not a legally binding commitment on our part but is a genuine intention to provide the services, if called upon to do so, subject to the availability of resources at the time.




Signed : Date : 10th March 20XX
Director – XYZ Ltd

[northernladuk]

No they wouldn't. If they had any weight at all they would have become common practice which they didn't.