Agency IR35 Advice

**Hobosapien** · 6 November 2018, 08:26

This relates to who determines the IR35 status. For public sector it is the client. For private sector it is currently the contractor. So the client or agency cannot currently determine your status.

You need to read up on the existing IR35 information regarding the private sector which boils down to getting the contract and working practices* reviewed to get an accurate status determination by a reputable independent third party. Then you can optionally back up the determination with insurance if deemed outside, to offset any future HMRC investigation and costs.

* As much as you can establish of them pre contract start, such as via questions you can ask the client at interview about the working environment and expectations.

**mudskipper** · 6 November 2018, 08:42

Originally posted by jaybro View Post

Hi, I’m new to contracting and going through a steep learning curve. Part of that learning curve, as you would expect, is IR35. I think I understand the basics and have been having ongoing discussions with the agency that placed me regarding my status. Below is part of an ongoing conversation about how someone concluded what my IR35 status is.

I’d be interested in hearing your thoughts on the below statement from my agency as it goes against what I believe is true. The reference to a Ltd Company is (I believe) advise from a Ltd Company contractor back to the agency on this subject. Company X is who I am working for.

“The fact that COMPANY X are a private company means that it is outside of IR35. If you were working for a public sector company then they would tell you if you were inside or outside. As the Ltd Company confirmed, any private sector contractors need not worry about this until April 2020.”

I just want to validate that I am correct in my understanding. Thanks in advance.

As Lance says, for a private company, you determine IR35 status and are responsible for any tax due - in the public sector it is the client.

Whether IR35 applies or not should not (in theory) change - just the responsibility for making the determination and collecting the tax. So for the agent to say the role is 'outside' is inaccurate, and the fact that it is a private company does not mean it the role is outside - that call is yours.

Get a contract review and read up on IR35 to ensure your working practices fall outside.

IPSE's Guide to IR35 | IPSE

**saptastic** · 6 November 2018, 09:13

Originally posted by jaybro View Post

Hi, I’m new to contracting and going through a steep learning curve. Part of that learning curve, as you would expect, is IR35. I think I understand the basics and have been having ongoing discussions with the agency that placed me regarding my status. Below is part of an ongoing conversation about how someone concluded what my IR35 status is.

I’d be interested in hearing your thoughts on the below statement from my agency as it goes against what I believe is true. The reference to a Ltd Company is (I believe) advise from a Ltd Company contractor back to the agency on this subject. Company X is who I am working for.

“The fact that COMPANY X are a private company means that it is outside of IR35. If you were working for a public sector company then they would tell you if you were inside or outside. As the Ltd Company confirmed, any private sector contractors need not worry about this until April 2020.”

I just want to validate that I am correct in my understanding. Thanks in advance.

This statement is wrong. IR35 can still apply. As above it is just about who determines and is liable. So still get your contract checked out.

**northernladuk** · 6 November 2018, 09:28

Originally posted by saptastic View Post

This statement is wrong. IR35 can still apply. As above it is just about who determines and is liable. So still get your contract checked out.

Definitely this. There is a link in my sig to QDOS who do contract checks. If it is your first contract I expect you will need PI/PL insurance which QDOS also do. They will negotiate the contract on your behalf if it fails which, bearing in mind the agent doesn't appear very clued up, could be useful.

Also IPSE+ membership is a no brainer. It covers any tax investigations but also has other worthwhile benefits. Link is also below.

Don't let the agency fob you off and give you your contract so late you can't get it checked either. If it hasn't turned up a good week before you start tell them you won't be starting without it.

**taxevo** · 6 November 2018, 09:31

Responsibility (at least for now!) in the private sector for determining IR35 status rests with the contractor. It is wrong for the client/agency to say it is outside. It is quite common for agencies to claim contracts are 'IR35 friendly' but you should always get your contract and working practices reviewed by an expert to determine your status.

**Guesstimator** · 6 November 2018, 11:47

Out of interest, which gobtulipe agency?

**jaybro** · 6 November 2018, 13:09

Thanks for all the responses. You have validated my view on this. The blanket statement that I am automatically outside IR35 because I am in the private sector was what perplexed me even after I provided them with links to HMRC and IPSE material.

I have already done the specialist review and will be reviewing IPSE membership.

I won’t provide details of the Agency as I’m not interested in mud slinging. Just learning the ropes. Thanks again.

**ladymuck** · 6 November 2018, 13:46

Originally posted by northernladuk View Post

... There is a link in my sig to QDOS who do contract checks...

Nope - just you still being happy about being 2011 forum personality of the year

**northernladuk** · 6 November 2018, 13:47

Originally posted by ladymuck View Post

Nope - just you still being happy about being 2011 forum personality of the year

Got asked to remove them so the link to the site can be found here..

Contractor Insurance - Business Insurance - Qdos Contractor

Agency IR35 Advice