Making a contract IR35 complaint - selling the benefits to client

[achillea]

I am waiting for my client to send me their standard contract which they use for interims (they insist I use theirs). I suspect it will not satisfy all requirements to put this outside of IR35. I intend to try and get this ammended and wondered if anyone can tell me the main benefits that I can sell to the client? I don't want it to sound like its only for my benefit.

Also, if they won't accept the changes, can I supplement this with a carefully worded Terms of Reference doc? (ie scope, objectives, deliverables, working arrangements, equipment etc). Would this hold weight with HMRC?

Many thanks

[Ardesco]

Tell them that if they sign a properly worded B2B contract outside IR35 there is no way you can ever claim employment rights, however if you sign one of thier temp contracts you could be a deemed employee which you don't want and they definetly don't want.


HTH

[Bluebird]

as with all IR35 it's not just about the contract...

if the working practices are inside you're stuffed regardless of what the contract says...

[achillea]

Thanks

If I can't change the contract terms I think I'll go ahead anyway as i want/need this project. If my actual working practices put me outside of IR35 but the contract wording is inside will this override the contract? I have every intention of making sure I operate outside as much as possible once I start.

[Bluebird]

Thanks

If I can't change the contract terms I think I'll go ahead anyway as i want/need this project. If my actual working practices put me outside of IR35 but the contract wording is inside will this override the contract? I have every intention of making sure I operate outside as much as possible once I start.

it's a combination of both, but I would guess that if either point to inside, then you're inside by default...

[Ardesco]

it's a combination of both, but I would guess that if either point to inside, then you're inside by default...

Correct, but you are much less likely to get investigated in the first place if your contract is correctly written. They are not likely to go for people that on the surface appear to be completly compliant when there are lots of people out there who do not look compliant and will be easier to go after.

[Lockhouse]

Thanks

If I can't change the contract terms I think I'll go ahead anyway as i want/need this project. If my actual working practices put me outside of IR35 but the contract wording is inside will this override the contract? I have every intention of making sure I operate outside as much as possible once I start.

Perhaps get Bauer & Cottrell to negotiate on your behalf? It always looks much more professional and they are used to dealing with intransigent clients/agencies. Well worth the money IMHO.

[TheFaQQer]

Tell them that if they sign a properly worded B2B contract outside IR35 there is no way you can ever claim employment rights, however if you sign one of thier temp contracts you could be a deemed employee which you don't want and they definetly don't want.


HTH

That's the main benefit - if the contract is correctly worded, then there is no way that you could claim to be an employee, which saves them money. Reference Muscat vs Cable and Wireless which potentially allows contractors to shift the tax burden to the client - if the contract is safe, then you won't be able to do that.

[XLMonkey]

Main benefits are:
- no implied employment rights, so no comeback
- you are liable for re-work if you muck things up
- if there's no work for you to do, they don't have to pay you.

...by the way, were you drunk in Surbiton yesterday...?