Contract started before company formation: Implications for IR35 Status?

[northern]

Hi everyone,

My first post: However, I've been lurking as a guest for a while and will try not to fall into too many of the 'newbie question' traps...

Having decided contracting was the way forward for me, I combined looking for that first contract with a bit of Umbrella vs. Ltd. co./IR35 research... In short, the first contract landed before I was able to see the wood for the trees and my company was not incorporated until around a month after starting the contract.

Now, I'm happy that this contract is outside IR35 in terms of my working arrangements and the contract, but am concerned that there may be an argument that, as the contract predates the company, the contract is between me as an individual and the agency, thus making it a relationship of employment.

Any constructive advice most gratefully received, thanks.

[VectraMan]

Did you sign anything as an individual?

The contract is between the agent and Yourco Ltd. So it can't exist before Yourco Ltd. does.

[northern]

That's what I was worried might be the case!

So, yes, I signed a letter setting out the broad scope of the contract before the company was formed. (This is as much of a formal written contract as I have for this engagement.) One of the 'stated expectations' in that letter is that I would work through my own limited company, which I was happy to do and was expecting for this contract. However, in my eagerness to get back to work and lost in the mass of info we newbie contractors need to digest, the contract started before I had sorted my umbrellas from my MSC's from my PSC's and we arrive at my situation today...

So, I'm confused now... I guess that argument says that the contract is still technically between the agent and me as an individual. ...Which it can't be because I'm not their employee...?

My accountants have said (just now!) that they don't see it as a problem as it is seen as a rolling contract and the company was in place shortly after the contract start date...

Any thoughts?

[sathyaram_s]

Don't worry about it ... If someone has to worry, then it should be your agency .. It will be them who the Hector will be asking for NI and PAYE for the first month you did not have a company ...

Even if you have been paid PAYE by your agency for a month, it does not mean your contract is IR35 ... It was a working arrangement that you chose before setting up a business ... It will not be seen similar to previous employment with the client ...

That's what I was worried might be the case!

So, yes, I signed a letter setting out the broad scope of the contract before the company was formed. (This is as much of a formal written contract as I have for this engagement.) One of the 'stated expectations' in that letter is that I would work through my own limited company, which I was happy to do and was expecting for this contract. However, in my eagerness to get back to work and lost in the mass of info we newbie contractors need to digest, the contract started before I had sorted my umbrellas from my MSC's from my PSC's and we arrive at my situation today...

So, I'm confused now... I guess that argument says that the contract is still technically between the agent and me as an individual. ...Which it can't be because I'm not their employee...?

My accountants have said (just now!) that they don't see it as a problem as it is seen as a rolling contract and the company was in place shortly after the contract start date...

Any thoughts?