I.T Contractors - "Opt Out" info needed!

[MattNM3E36]

Hi folks,

just going for my first contract as a limited co., whats the deal with the "opt out" of the agency reg's

I've been recommended to opt out by the agency, but i'd like some unbiased advice from people have been there and done it!

Please PM if you dont feel happy posting here

Thanks,

Matt

[UpTheIron]

Hi,

I've got a contract renewal through from one of my customers (for the end of the year) and need to opt in / out by renewal time, so in the same boat as you.

My accountant is of the opinion it doesn't make a whole lot of difference from an IR35 perspective, but my take on it is this:

- I run a (small) IT consultancy in my it's own right.
- I am both the owner and principle of said company. Usually the only consultant too, most of the time but not always.
- Would an IT consultancy opt in? No. Therefore I won't either.

[MattNM3E36]

Thanks for the reply,

Looking at PCG, they seem to recommend opt out as well (in fact, they were mainly responsible for the opt out (clause 32) being added, so thats good enough 4 me

Cheers

[dern]

Opting out makes IR35 ducking slightly more likely... not that it actually will make any difference if you do get taken to task but it all helps I guess. The main reason for doing it is it releases you and the agency from a ton of paper work.

Mark

[JonRB]

The other reason to opt out is that, although they say they won't and the regulations say they shouldn't, agencies WILL look more favourably on consultants / comsultancies that opt out. The reason is that opting in means that they can't stop you and the client going direct either business-to-business or by recruiting the consultant as an employee. Before the regulations, and also if you opt out, they can put a standard "lock-in" clause in the contract.

[MattNM3E36]

Thanks folks, this is all good stuff!

[tycho]

I was also told that the opt out allows you to work all hours you want, not limited to the standard working week and also will allow you to work the contract without having to take holidays etc.

[MattNM3E36]

Another good point well made!