IR35 concerns and help? IR35 concerns and help?
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  1. #1

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    Default IR35 concerns and help?

    Hi All,

    Im starting my own limited company after seeing employed for many years. It will be providing a number of services, mainly design related. I have secured a minimum of x2 days a week doing work for a company who have drafted up a contract. I have done a little research and have only just come across what IR 35 is so i need to make sure i don't fall within this.

    It's all a bit of a minefield for me at the moment but im looking at IPSE and Qdos. I notice both have memberships and insurances etc. What is needed/advised? Is there one better than the other.

    My company may have this client plus hopefully more added down the line. I expect to turnover anywhere between £50-100k first year if that helps.

    Any advice would be great.
    Thanks.

  2. #2

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    Quote Originally Posted by slidingaround View Post
    Hi All,

    Im starting my own limited company after seeing employed for many years. It will be providing a number of services, mainly design related. I have secured a minimum of x2 days a week doing work for a company who have drafted up a contract. I have done a little research and have only just come across what IR 35 is so i need to make sure i don't fall within this.

    It's all a bit of a minefield for me at the moment but im looking at IPSE and Qdos. I notice both have memberships and insurances etc. What is needed/advised? Is there one better than the other.

    My company may have this client plus hopefully more added down the line. I expect to turnover anywhere between £50-100k first year if that helps.

    Any advice would be great.
    Thanks.
    The thing to bear in mind when it comes to IR35, is that IR35 relates to each individual role. So each role will have its own risk for IR35.

    Here are the key factors you would need to consider;

    1. Personal Service * if the contract requires that you must personally provide services there is a stronger suggestion towards IR35. However, if you can send a substitute or subcontract some of your work that is another matter and is often considered the strongest argument against IR35, although it must be a genuine right and not merely an ability to offer a substitute.



    2. Supervision, Direction and Control * this considers how, when and where the work is carried out and the degree of full autonomy over the work to be done. The greater the autonomy the more likely the contract will be seen as outside IR35. But if you are told how to do it and work, in many respects, in a controlled or supervised manner it is more indicative that IR35 is a risk.



    3. Mutuality of Obligation (MOO) * this relates to the extent you are obliged to carry out any work offered to you or whether the client is obliged to offer you work outside the scope of the contract. Where those obligations are limited entirely to the work set out in the contract this is suggestive that IR35 will not apply.


    4. Financial Risk * consideration is also given to the degree of financial risk and whether the contract confers a degree of risk beyond that normally expected of an employee or the contract offers opportunities to profit from your own skill. Examples would include a requirement to correct defective work at your own expense; the risk of claims against you for damages or penalties; any requirements for professional indemnity insurance; or the ability for the contract to be more profitable by efficient working.

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    Welcome to CUK.

    Congratulations on your first offer of a contract. In these times, count yourself amongst the lucky, and that your talent has been spotted.

    Each contract is assessed on its own merits, and the actual working practices once you have started.

    My personal recommendation is QDOS, as I can't see the benefits of being an IPSE member, any longer (this is not based on their "headline advantages" but on their Articles of Association and use of Members' funds). I am sure that there are others who will reply to the contrary.

    QDOS's reviews are second to none, and I always have each contract (and renewal offer) assessed.
    I was an IPSE Consultative Council Member, until the BoD abolished it. I am not an IPSE Member, since they have no longer have any relevance to me, as an IT Contractor. Read my lips...I recommend QDOS for ALL your Insurance requirements (Contact me for a referral code).

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    If you joined IPSE, you would still need to pay for a contract review. Not all of their insurances may be relevant to you, so be wary of buying something you don't need.

    I didn't realise Qdos had a membership thing going, I thought it was just contract reviews and insurances.

  5. #5

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    Quote Originally Posted by Ricky@IntouchAccounting View Post
    The thing to bear in mind when it comes to IR35, is that IR35 relates to each individual role. So each role will have its own risk for IR35.

    Here are the key factors you would need to consider;

    1. Personal Service * if the contract requires that you must personally provide services there is a stronger suggestion towards IR35. However, if you can send a substitute or subcontract some of your work that is another matter and is often considered the strongest argument against IR35, although it must be a genuine right and not merely an ability to offer a substitute.



    2. Supervision, Direction and Control * this considers how, when and where the work is carried out and the degree of full autonomy over the work to be done. The greater the autonomy the more likely the contract will be seen as outside IR35. But if you are told how to do it and work, in many respects, in a controlled or supervised manner it is more indicative that IR35 is a risk.



    3. Mutuality of Obligation (MOO) * this relates to the extent you are obliged to carry out any work offered to you or whether the client is obliged to offer you work outside the scope of the contract. Where those obligations are limited entirely to the work set out in the contract this is suggestive that IR35 will not apply.


    4. Financial Risk * consideration is also given to the degree of financial risk and whether the contract confers a degree of risk beyond that normally expected of an employee or the contract offers opportunities to profit from your own skill. Examples would include a requirement to correct defective work at your own expense; the risk of claims against you for damages or penalties; any requirements for professional indemnity insurance; or the ability for the contract to be more profitable by efficient working.
    Thanks, some good points i will consider when reviewing the contract.

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    Quote Originally Posted by Scruff View Post
    Welcome to CUK.

    Congratulations on your first offer of a contract. In these times, count yourself amongst the lucky, and that your talent has been spotted.

    Each contract is assessed on its own merits, and the actual working practices once you have started.

    My personal recommendation is QDOS, as I can't see the benefits of being an IPSE member, any longer (this is not based on their "headline advantages" but on their Articles of Association and use of Members' funds). I am sure that there are others who will reply to the contrary.

    QDOS's reviews are second to none, and I always have each contract (and renewal offer) assessed.
    Thanks.
    I've ended up just getting the basic IPSE membership, it was only #8.50 or something a month and it gave me access to draft contracts i can look at to get this contract done and dusted.

    What specifically would you recommend from QDOS?
    I had a quick look through and there were quite a few add-ons that really started mounting up which i weren't sure i actually needed.

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    Quote Originally Posted by ladymuck View Post
    If you joined IPSE, you would still need to pay for a contract review. Not all of their insurances may be relevant to you, so be wary of buying something you don't need.

    I didn't realise Qdos had a membership thing going, I thought it was just contract reviews and insurances.
    Yes maybe they don't, i just had a quick skim through. I spoke with someone on the phone at IPSE and they said if your a member, even basic, the contract review is £58.80 that gets reviewed in 3-5 days or £72 for same business day.

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    TLC35
    Professional Indemnity
    Public Liability
    Jury Service cover

    I'd put the £8.50 per month towards that instead.
    I was an IPSE Consultative Council Member, until the BoD abolished it. I am not an IPSE Member, since they have no longer have any relevance to me, as an IT Contractor. Read my lips...I recommend QDOS for ALL your Insurance requirements (Contact me for a referral code).

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    Quote Originally Posted by Scruff View Post
    TLC35
    Professional Indemnity
    Public Liability
    Jury Service cover

    I'd put the £8.50 per month towards that instead.
    Its that price if your paying the £8.50 i think.

  10. #10

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    Quote Originally Posted by slidingaround View Post
    Thanks, some good points i will consider when reviewing the contract.
    Not a problem. And wish you all the best on the start of your contracting career.

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