Length of contract for IR35

Hello, wonder if anyone can advise on something;

I'm a limited company working as web development/Design, and recently through a recruitment agency have picked up a 9-5 5 days a week contract with a company.

They have a number of similar contractors and the contract seems to be open-ended at the moment.

While this is good for regular income, I was wondering if this would be a problem regarding IR35, and if the length of time actually matters, eg if I stayed for under 6 months, and if it makes a difference that I'm working through a recruitment company for the company I'm working for.

Ideally I would like to move in a few months anyhow as I cannot pick up and build new clients while on this contract.

I advertise my services on the web, and aim to bring in some proper marketing this year as I would like to build my clients up and have less recruitment agency work.

I have around 4/5 regular clients doing bits and bobs and providing services.

Where I am now provide the equipment, dictate the hours, but my contract I guess is with the recruiment company.

Any advice greatly appreciated, I'm not sure weather to look for something else now or hang in for a little while longer. But I don't want to make problems for myself down the line.

Thanks

MRO

[BlasterBates]

Sounds to me like you are fairly clearly outside IR35, i.e. you use your own equipment you have other clients etc. As long as you are not being controlled on a daily basis by the client i.e. starting servers, doing updates at the behest of the PM etc and you work independently building something for the client then you will have little to worry about.

You can have your contract checked to see that it is outside IR35.

[Swamp Thing]

By and large, your contract length is not of issue in terms of IR35.

But your contract and working practices are, and must stand up [I]de minimis[I] to the 3 key tests of being in business on your own account: D&C, MOO, right of substitution. Look up other posts on these areas to help you decide where you stand.

[mro]

ir35

Hi,

Sorry I could have probably been a bit clearer about the equipment - it's provided by them - I think I could bring in mine if needed.

My tasks are pretty much controlled and fed by Project Manager and assigned through a management systems, its a big global company so I'm doing updates etc.

The hours are pretty much 9-5, eg I would have to seek approval to have time off.

So really it feels pretty much like a regular 9-5.

It's these bits that make me wonder, but also the fact that there is a recruitment company inbetween us - how that scenario works out.

Thanks

[northernladuk]

Where contract length isn't a problem having no end date certainly is. Who else do you know that has a contract to work with no end date?? Permies.

You still have to be mindful of the way we work, the fact that our way must be different to permies and contracts must be in place that back this working method (practices up)

IR35 is on a contract by contract basis so the other customers will help keep you off the radar via the new business questions they can still look at each of your contracts if you get fingered. I would not be comfortable at all with an open ended contract for bum on seat 9-5 having to ask for time off.

Stuff like providing own equipment is only a small flag. You need to look at the main stays of IR35 defence first. For example What type of work with they give you? Anything they fancy as and when or are you delivering a very specific piece of work? Will they just give you another piece of work? Is it an enduring role and so on.

It sounds very much to me he wants temp staff, not a contractor in which case I would say yes you need to be worried about IR35.

[mro]

Thanks very much, I think it's probably not the best situation for me as like you say alot of the things point to temp staff role.

I can get given anything, and don't have a specific role to work on. I have a desk, and email address at the company & provided fixed equipment. At no point has it been mentioned that the role may have an end date and some guys have been there a long time - could be different for them though as they could be employed by the recruitment agency (eg get holidays, recruitment agency pays their tax etc)

I think perhaps I should look further afield for a more suitable direct role which is more project based.

Am I right in saying if I pick something up that's described as a project for say 3 months, I provide my own gear, can work from home or set my own hours - then that's more suitable. I am going to look at some contracts also I think to use for my direct clients.

What I am little hazy on also is the use of recruitment agents, as they pay me - I guess my contract is with them. If that's the case do I need to be supplying my own contract to the agents, up to now I just signed theirs but I am starting to wonder if I should go here's my contract for you to sign also?

It's a shame as it's a great place, I did ponder suggesting I could possibly work for them for three days a week so I could develop and work on direct clients projects. But I think that wouldn't change any situation, I think this could only work if I'd have come across them before being introduced by the recruitment agents - I would have had my own contract & terms - provided my own gear etc. as it stands I'd be in the same situation I reckon, weather it's 3 or 5 days a week.

thanks