No work....No pay

[dx4100]

Hi Guys

Got a contract at the moment and the work as gone stale on it. Basically waiting for system testing to start due to delays at the clients end. So I am not active. IR35 reasons I suppose I just have to take that on the chin and not receive payments. They have talked about paying me a "retainer" until the system testing starts again. What's peoples thoughts? How IR35 friendly would that be ?

I have other things I can work on outside of this contract, that's not a big problem, but I wasnt planning on this break and just wanting to know how I can maximise my money from them in a IR35 friendly way

[Turion]

Regardless of IR35, them not paying you hardly maximizing your earnings is it?

What does the contract say? Unless it's a fixed price 'come and go' project, normally you will be providing services for a set number of hours or days a week and get paid for this time. Not when the client feels like paying you.

[dx4100]

Regardless of IR35, them not paying you hardly maximizing your earnings is it?

What does the contract say? Unless it's a fixed price 'come and go' project, normally you will be providing services for a set number of hours or days a week and get paid for this time. Not when the client feels like paying you.

I dont get how you can provide services and have a contract that states the set number of hours or days in a week without being in breach of IR35. Surely that's heading towards a contract of employment ?

The contract does not contain such information... Just contains a date for when services will be completed by and my rate.... It says I will invoice for "time and materials". I use the draft contract provided by the PCG.

[DaveB]

Regardless of IR35, them not paying you hardly maximizing your earnings is it?

What does the contract say? Unless it's a fixed price 'come and go' project, normally you will be providing services for a set number of hours or days a week and get paid for this time. Not when the client feels like paying you.

And then you get caught by IR35 under MOO. One of the big pointers to being outside IR35 is not getting paid when there is no work to do. Thats what permies do, not contractors.

Negotiating a retainer should be ok as long as it is arranged properly. If you can get other work in the meantime, even if it's just a few days then there is no issue since it means you have concurrent contracts, which immediately put you outside IR35.

[Turion]

You a lawyer or a contractor? There is a lot more to passing IR35 than not being paid.

[DaveB]

You a lawyer or a contractor? There is a lot more to passing IR35 than not being paid.

Yes there is, but turning up and getting paid when there is no work to do is a fail from the start.

Being on retainer and getting paid by another client for another contract at the same time is pretty much an automatic pass.

[dx4100]

And then you get caught by IR35 under MOO. One of the big pointers to being outside IR35 is not getting paid when there is no work to do. Thats what permies do, not contractors.

Negotiating a retainer should be ok as long as it is arranged properly. If you can get other work in the meantime, even if it's just a few days then there is no issue since it means you have concurrent contracts, which immediately put you outside IR35.

Excellent...

That is what I thought...

Question is now how do I arrange it... Simple letter with the situation stated ? Length of time covered....rate of pay during that time ?....

The length is a bit of a variable at the moment...

[dx4100]

You a lawyer or a contractor? There is a lot more to passing IR35 than not being paid.

While I am not a lawyer I still need to understand IR35 the best I can. I dont understand accountancy but as a business owner I need to be aware of some of the finer points.

Yourself as an employee don't

[DaveB]

Excellent...

That is what I thought...

Question is now how do I arrange it... Simple letter with the situation stated ? Length of time covered....rate of pay during that time ?....

The length is a bit of a variable at the moment...

Give Bauer and Cottrell a call and see what they say. You may end up paying for the advice but they are worth it imo.

[dx4100]

Give Bauer and Cottrell a call and see what they say. You may end up paying for the advice but they are worth it imo.

Ok cheers... I use Abbey Tax for my insurance / advice... I will give them a call, just wanted to get a couple of free opinions first