Opt in or out?

[chris79]

Ok I should really know what this means but the truth is I don't, and I can't search it either as the key words are too short.

I'm about to sign a new contract (my 2nd) for a new role and I have the choice to opt in or out. I'm guessing opt out, any advice please? (I'm limited company doing my best to operate OUTSIDE IR35).

Cheers!

[malvolio]

All you need to know is right here...

http://www.pcg.org.uk/cms/index.php?...+this+document.

FWIW it has no direct effect on IR35 at all. But do you want a reasonable certainty of payment and limited handcuff terms: if you do, the contract you get may be less than IR35 friendly...

[chris79]

Only available to members by the looks of it.

Thanks for the heads up though.

[Ardesco]

Try these threads then:

http://forums.contractoruk.com/busin...y-opt-out.html

http://forums.contractoruk.com/busin...st-me-gig.html

http://forums.contractoruk.com/busin...all-about.html

http://forums.contractoruk.com/busin...t-opt-out.html

http://forums.contractoruk.com/busin...out-again.html

Can't be bothered to type out all that info again

[malvolio]

Only available to members by the looks of it.

Thanks for the heads up though.

I know. You mean you're not a PCG member? Tsk, tsk, tsk...

[chris79]

Cheers guys!

[Wanderer]

Don't opt out, there is NO reason to do so. It has NO bearing on IR35 either.

Agencies just want you to opt out because you lose some of the safeguards under law, specifically they don't have to pay you unless you have a signed timesheet and they can enforce long tie-in clauses in contracts.

However, it does mean that they have to take up references, verify your identity and check your qualifications which may be a PITA for the contractor if the agency can actually be bothered to do any of that.

[TheFaQQer]

<Malvolio>
Opt out - always opt out. The opt in was designed for poorly-paid temps, and unless you are one, then you should opt out
</Malvolio>

No idea why - I disagree with it, and always opt in.

[lxt04]

I'm about to sign a new contract (my 2nd) for a new role and I have the choice to opt in or out. I'm guessing opt out, any advice please?

WTS, don't opt out. You gain nothing.

Plus, if you're about to sign the opt-out having won the contract, you may have already interviewed or met with the client - in which case, you can't opt-out at all (you can sign it, but it will be invalid).

You can only opt-out of the regulations before you are introduced to the client.

[MaryPoppins]

PCG guidelines around the agency regulations state:

PCG's view is that the choice of opting in/out of the agency regulations is unlikely to make a major difference to employment status for the purposes of IR35. It is likely that a court may view opting out of the regulations as a minor pointer away from employment but it is unlikely that remaining within the agency regulations would form an indicator to employment as "contracts for services" (self employment) are mentioned in the text of the regulations.

Certain clauses that are helpful to IR35 are, however, not allowed if you remain within the Agency Regulations.

e.g., they prevent you from being responsible for your work (and fixing errors in your own time) which is a good indicator that the contract is a business to business contract and therefore outside IR35.

The PCG recommend opting out before attending an interview, then making a decision regarding opting in, once more is known.

It is legal for an agency to amend the contract should you choose to opt in (i.e. to make it less IR35 friendly, for example). On a positive note, you may also use the offer to opt out as a bargaining tool to negotiate better contract terms.

I sometimes opt out, I sometimes opt in. It depends. Different for everyone.