Starting contract, IR35 issue

[john_p]

Starting a new contract shortly but there a few contractual terms that would probably guarantee it gets caught by IR35 (timesheets etc)

The agency have told me they can't make the provisions less specific (i.e. no reference to timesheets, job tasks etc) as these need to "mirror" the contract they have with their client. So I'm not sure where to start.

I've seen a few places that charge about £150 to "review" the contract, but this doesn't give me much confidence that it will actually help my chances in avoiding IR35. What do you contractors out there do in this situation?


Also is PCG worth joining - and if so can they assist in this situation?

[Jared_m]

Steer clear of anywhere that charges money to review contracts. The PCG can be helpful (I'm a member) as they provide a fair bit of advice as welll as some sample contracts that fall outside of IR35. I renewed last year as I found it worth the money but not everyone finds PCG membership helpful.

Almost every reputable agency realises now that it is in their own interests as much as anyone elses to ensure they provide IR35 friendly contracts. If they're being inflexible at this stage, then perhaps look at them a little suspiciously.

Also keep in mind that it is not only the contractual terms that the Inland Revenue will apply when considering if you fall inside or outside of IR35 but that they will also look at working practices.

[Eric Mc]

Exactly - the contract is only part of the overall consideration. The Revenue will review your contract for free!!!!!

[john_p]

The agency are being a bit funny about changing it, presumably because they want me to sign it quickly. If I get caught by IR35 and can't avoid it, am I going to be better off using an umbrella company?

[jimothy]

The umbrella company Giant will review all contracts for IR35 issues, and provide free IR35 insurance (though I don't know of any test cases so no idea if it'd pay up or not)

[havoc]

john_p said:

The agency are being a bit funny about changing it, presumably because they want me to sign it quickly.

Tell them you're not signing until you're happy with it. If they get arsy with you, THEN tell them if they're not prepared to help then you may have to tell their client...THEY need the client more than the client needs them.

[225]

TO be honest you have to be very unlucky to get hit by ir35, so long as you keep a low profile with the IR chances are you'll never get picked on. There are thousands of contractors these days.

[john_p]

I got the contract reviewed by Bauer & Cottrell, who dealt directly with the agency and got the changes made to my contract.

Miraculously (!) the client was perfectly happy for the changes to be made .. so now in their opinion the contract falls outside IR35.