Outside IR35 contract advice needed

[Lucky Phil]

Hi All,

I have been offered an Outside IR35 contract to start next week. This is through an agency who basically says it's between me and the end client. He won't even say what the day rate is and has no idea what he is doing.

I spoke to the client and they said "it's definitely outside of IR35 as we are a small company."

Small companies exemption

• It must have an annual turnover of no more than £10.2 million.
• It must have a balance sheet total of no more than £5.1 million.
• It must have an average of no more than 50 employees.

I only have his word for this and I cannot find this company on Companies House to prove any of this (they may be genuinely trading under a group/different name or something for all I know).

I am an accountant and this is the first Outside IR35 contract I have done if I take this on. I own a limited company but I have not traded in anyway until this contract.

Do I
-need to get the contract evaluated professionally?
-just take his word for it? I assume if I am investigated then it's my head on the block?

Please advise as I have never done this before

Thanks
Phil

[hobnob]

You asked a similar question a few years ago, and the same answer applies:
Ir35 exemption if company < 200 staff - Contractor UK Bulletin Board

Basically, the exemption means that you're responsible for the IR35 determination rather than the end client. See:
Understanding off-payroll working (IR35) - GOV.UK (www.gov.uk)

[hobnob]

I'm also curious about you saying that this is your first outside contract. Back in 2020, you said that you were closing down your limited company and that you had a net profit of £8k:
Limited Company Closure - Contractor UK Bulletin Board
Where did that income come from?

Back then, you were asking your accountant for help. Have you qualified as an accountant yourself since then?

[gixxer2021]

If it is a small company then it’s your responsibility to make sure the contract and working conditions are outside ir35, I’d ignore anything the agent says regarding this. Have you seen a copy of the contract yet? I’d recommend getting it reviewed along with the working conditions asap. If the client says it’s outside then hopefully they’ll be open to ensuring anything required to ensure it firmly outside. I’ve used Bauer and Cottrell a lot (no affiliation!) and they’ve been excellent, quick turn around and I believe will also help negotiate any required contract clauses, etc.

[northernladuk]

Inneresting