Right of substitution

[rootsnall]

I had to let my accountant know fairly quickly so I have advised that it is inside IR35 as so many of the questions that are asked in a contract review lead me to believe that it is inside.

I think it's good to make an attempt to get your contract more IR35 friendly but I personally wouldn't ever deem myself inside. For a 3 month contract your chances of getting investigated are minimal, even then the chances of you getting done are even more minimal, and even then you just cough up the extra tax/NI if it came to it, they won't lock you up !

[TheFaQQer]

you just cough up the extra tax/NI if it came to it, they won't lock you up !

Plus the interest and penalties they also charge.

I would get the contract reviewed, get it changed to outside IR35, and either take out insurance through Qdos or join the PCG.

[rootsnall]

Plus the interest and penalties they also charge.

I would get the contract reviewed, get it changed to outside IR35, and either take out insurance through Qdos or join the PCG.

No penalties in the lost cases so far if the info on here and other sites is to be believed. I agree on the PCG insurance bit, I've got that. The rest depends on your attitude to risk ( long odds ! ), if you like shelling out for contract reviews and if you want to risk losing out on work by haggling over contract details. Each to his own !

[Jog On]

Only if the contract is with you personally, and not with your company. If the contract is with your company, you could still substitute another member of your company's staff without falling foul of this clause.

That's how I understand it as well. Subcontracting to a 3rd party and being in a position to provide the services of your Ltd by sending in another employee other than yourself are not the same thing.

My contract has a "thou shalt not subcontract to a 3rd party" clause which the agent was very insistent on keeping however throughout the rest of the contract there are references to 'any employee/represeentative' of [the contractor's Ltd company].

It doesn't have an actual clause that says "if for whatever reason you cannot provide the services to the end client you may send in a replacement" although the rest is worded as though that is implied.

I don't know if that's ideal - I have the MOO and control clauses in there and it's my 3rd 3 month gig in a row so I'm sleeping at night.

[TheFaQQer]

No penalties in the lost cases so far if the info on here and other sites is to be believed. I agree on the PCG insurance bit, I've got that. The rest depends on your attitude to risk ( long odds ! ), if you like shelling out for contract reviews and if you want to risk losing out on work by haggling over contract details. Each to his own !

I think that if you can prove that you took steps to endeavour to be outside IR35, but argue and lose, then you don't pay penalties.

If you can't prove that you checked it out etc. etc. and just decided to risk it, then it looks more like evasion, and they can charge penalties.

Where's Mal when you need him?