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Extending beyond 24 months

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    Extending beyond 24 months

    Hi there. Done quite a few contracts in my time and never been with a (private sector) client more than 24 months because of the rule around expense claims.
    Since I am approaching that stage now and quite like this gig, so long as there is a clearly defined deliverable over the extension,
    contract has been reviewed and accepted as outside IR35 (and working practices do reflect this), is there any reason why I should not
    extend with this client apart from the fact that the expenses will now have to come out of any dividends drawn?

    #2
    As long as it's still worth while after your travel costs then extend it. See if you can negotiate some WFH to reduce your costs.

    Comment


      #3
      Purely your call. We can't make that decision for you. Remember you have to stop claiming at the point you expect to be there over 24 months. Not at 24 months.
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        Originally posted by exiledinlondon View Post
        Hi there. Done quite a few contracts in my time and never been with a (private sector) client more than 24 months because of the rule around expense claims.
        Since I am approaching that stage now and quite like this gig, so long as there is a clearly defined deliverable over the extension,
        contract has been reviewed and accepted as outside IR35 (and working practices do reflect this), is there any reason why I should not
        extend with this client apart from the fact that the expenses will now have to come out of any dividends drawn?
        Depends how much they want and trust you.

        Where I am now, someone negotiated 100% WFH purely due to the 2 year expenses rule.
        The Chunt of Chunts.

        Comment


          #5
          Just be careful on the IR35 front - the one thing that they might be able to get you on is part and parcel; have you become accepted as a permie in disguise in their eyes?
          The greatest trick the devil ever pulled was convincing the world that he didn't exist

          Comment


            #6
            NLUK - thanks for that clarification. On the point of the client viewing the contractor as 'part and parcel', wouldn't that be covered under mutuality of obligation?
            The WFH route is very much a possibility. However, my final question is would combining this gig for 3/4 days with another gig for an old client of mine
            protect against the 'part and parcel' determination?

            Comment


              #7
              Not quite. Being part and parcel is a mix of various bad things. MoO is about accepting work outside the current agreement. Although complicated it focuses just on that area. Part and parcel can be a whole number of things lumped in.

              Your general understanding is a little lacking as well. IR35 is on a contract by contract basis. Having another contract has zero bearing on the other one. You could be inside for both if you do it wrong. Getting the general understanding right is key before trying to guess other more complicated aspects.
              Last edited by northernladuk; 22 February 2017, 13:15.
              'CUK forum personality of 2011 - Winner - Yes really!!!!

              Comment


                #8
                Originally posted by exiledinlondon View Post
                NLUK - thanks for that clarification. On the point of the client viewing the contractor as 'part and parcel', wouldn't that be covered under mutuality of obligation?
                The WFH route is very much a possibility. However, my final question is would combining this gig for 3/4 days with another gig for an old client of mine
                protect against the 'part and parcel' determination?
                Have a read through this:
                IR35 - Part and parcel of the organisation :: Contractor UK
                The greatest trick the devil ever pulled was convincing the world that he didn't exist

                Comment


                  #9
                  How much expenses ? I ask because one chap was going to give up a contract last week as he could not claim £31.50 a week?

                  If hundreds for hotels , ask client to reduce your rate and pay your hotel directly for you - job done

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