Which contract needs to be reviewd for IR35?

[sdyson31]

Hi,

If the agency is involved then which contract needs to be reviewed? The one b/w client and my agency or the one b/w myself and my agency?

I believe in the event of an HMRC inquiry, they can look at both contracts (one between myself and my agency and the one between the agency and the client) but it is not easy to see the upper level contract as most of the agencies would refuse to show it.

I have personally come across few agencies who hold different IR35 friendly contracts templates and willing to offer these to contractors when actual upper level contract is inside IR35.

[TheCyclingProgrammer]

You can only get the contract between you and the agency reviewed. You're not party to their agreement with the client and you'd be lucky to even see it.

[sdyson31]

You can only get the contract between you and the agency reviewed. You're not party to their agreement with the client and you'd be lucky to even see it.

What if HRMC wants to see upper level contract? and who will be responsible if both contracts are not same.

[northernladuk]

Hi,

If the agency is involved then which contract needs to be reviewed? The one b/w client and my agency or the one b/w myself and my agency?

Oh dear oh dear...

I believe in the event of an HMRC inquiry, they can look at both contracts (one between myself and my agency and the one between the agency and the client) but it is not easy to see the upper level contract as most of the agencies would refuse to show it.

I have personally come across few agencies who hold different IR35 friendly contracts templates and willing to offer these to contractors when actual upper level contract is inside IR35.

I find that very hard to believe. The upper contract is none of your business and I'd be very surprised if anyone is going to tell you it's inside IR35. If it is and the working practices are also inside it won't matter one jot which 'template' you use.

You get your shizzle sorted with proper contract and working practices reviews, get yourself some IR35 insurance, read up on it so you don't put yourself inside when you are on site and get on with your business IMO.

[northernladuk]

Here is some reading for you that should cover the end to end process of what we do with plenty of what if type articles that should answer most of your questions. Read these and you'll probably be ahead of many contractors but sadly that's nothing to shout about.

Legal: Contractor Legal Information for UK contractors

[psychocandy]

oh dear oh dear oh dear

[MrMarkyMark]

Hi,

If the agency is involved then which contract needs to be reviewed? The one b/w client and my agency or the one b/w myself and my agency?

I believe in the event of an HMRC inquiry, they can look at both contracts (one between myself and my agency and the one between the agency and the client) but it is not easy to see the upper level contract as most of the agencies would refuse to show it.

I have personally come across few agencies who hold different IR35 friendly contracts templates and willing to offer these to contractors when actual upper level contract is inside IR35.

Personally, eh?

What did you say to the client, you show me yours and I'll show you mine?

[LondonManc]

I find that very hard to believe. The upper contract is none of your business and I'd be very surprised if anyone is going to tell you it's inside IR35. If it is and the working practices are also inside it won't matter one jot which 'template' you use.

You get your shizzle sorted with proper contract and working practices reviews, get yourself some IR35 insurance, read up on it so you don't put yourself inside when you are on site and get on with your business IMO.

Further to this, I don't see how I/myco can be legally bound by an agreement that I'm not privy to.

[jamesbrown]

What if HRMC wants to see upper level contract? and who will be responsible if both contracts are not same.

In an investigation, they will. If there's a major discrepancy, they will exploit that. One more reason for not sourcing work through agents (and, yes, I know it's not practical for everyone)

[jamesbrown]

Further to this, I don't see how I/myco can be legally bound by an agreement that I'm not privy to.

YourCo is legally bound by the contract you have with the agency. However, IR35 is concerned with your working practices. If the upper level contract points to working practices that would put you inside IR35, you'll need to explain that, which may not be straightforward. That is a perennial risk w/r to IR35 when working through agencies. This isn't about who is contractually bound to what, but the evidence in an IR35 investigation. You can only control the contract between YourCo and the agency and, crucially, your working practices. If your working practices are outside, you're fine, but you may have a tougher fight when the upper level contract is exposed as contradictory.