new contract and IR 35 query

[diesel]

New agent said I should be paid monthly rather than weekly to keep my off IR 35 radar. Anyone else heard of this?

At present I have always been paid and invoice weekly, but they suggested I do this monthly in line with their other contractors.
Any views welcome.
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Also as the next gig is for approx 7mths, agent said they will write new contract which is only valid for 7mths, although client tells me follow on work is likely but cant be guaranteed.
I normally get contracts that are quarterly issued, to prove it’s a temporary work place. Any views welcome.

[Clare@InTouch]

The time period of payment won't make any difference to IR35.

The 7 month contract is fine too, just because it's longer than 3 months doesn't mean it cannot still be temporary. Keep in mind the 24 month rule for travel though.

For IR35 you need to be looking at Control, Substitution and lack of MOO.

[LisaContractorUmbrella]

New agent said I should be paid monthly rather than weekly to keep my off IR 35 radar. Anyone else heard of this?

At present I have always been paid and invoice weekly, but they suggested I do this monthly in line with their other contractors.
Any views welcome.
========================
Also as the next gig is for approx 7mths, agent said they will write new contract which is only valid for 7mths, although client tells me follow on work is likely but cant be guaranteed.
I normally get contracts that are quarterly issued, to prove it’s a temporary work place. Any views welcome.

It sounds as though they are just trying to make their lives easier - I cannot think that weekly or monthly payment schedules would have any bearing on IR35 at all

[Wanderer]

New agent said I should be paid monthly rather than weekly to keep my off IR 35 radar. Anyone else heard of this?

More agency bulltulip.

As Lisa/Clare say, being paid weekly or monthly doesn't make any difference to IR35. It does make a difference to the amount of your company's money the agency holds though!!!

I'll have weekly invoicing and payments, thank you very much.

[diesel]

this is the official info from agent's manager!

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Employers’ Liability (EL) is required due to the fact that part of the IR35 test is to do with the right of substitution. You have a substitution clause in your contract with NES which, without having EL in place, may be seen as being redundant or merely “window dressing” rather than a real consideration. For, if you somehow had to rely on the substitution clause and employ a substitute then you would be legally obliged to have EL in place to cover this risk to your company. In order to satisfy the substitution clause in your contract, you should take out Employers' Liability so that you are not breaking any rules governing your IR35 status. To this end having your own EL insurance in place is another layer signifying you are willing to take risk and subsequently supports your Independent status should H.M.R.C. investigate.
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They said i must accept to have EL otherwise i have no contract. To be honest its my business risk whether i get EL or not although i have it now, just means i need to fork out more for a pathetic pointless policy.

[Dearnla]

HSE - Employers' Liability Compulsory Insurance
If you are a Ltd Co. Contractor, you will have to take out EL insurance, because your company has employees i.e. You
Anyway, it usually cover Public liability too.

[diesel]

HSE - Employers' Liability Compulsory Insurance
If you are a Ltd Co. Contractor, you will have to take out EL insurance, because your company has employees i.e. You
Anyway, it usually cover Public liability too.

Thanks but the HMRC link states
Do I need this insurance?
The answer is almost certainly 'yes'. However, you may not need it if you have no employees, are a family business and closely related to your staff, or a public organisation (for example, a government department or a health service body).

[Mr.Whippy]

New agent said I should be paid monthly rather than weekly to keep my off IR 35 radar. Anyone else heard of this?

No, I hadn't heard this one.... but it's a cracker...

Typical agent feeding you tulip so they can hold onto your money longer

[TheCyclingProgrammer]

HSE - Employers' Liability Compulsory Insurance
If you are a Ltd Co. Contractor, you will have to take out EL insurance, because your company has employees i.e. You
Anyway, it usually cover Public liability too.

You don't need employers liability if your only employee is you as the sole director.

[Wanderer]

this is the official info from agent's manager!

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Employers’ Liability (EL) is required due to the fact that part of the IR35 test is to do with the right of substitution.
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In the event that I need to put a substitute in to do the job, they would be engaged as a subcontractor under a business to business relationship - they would NOT be an employee of MyLTD, therefore the logic is wrong.

They said i must accept to have EL otherwise i have no contract.

Then the point is moot. Right or wrong, you now have to go and get yourself some EL insurance. Yes, it's annoying but it's only a couple of hundred quid and it keeps the jobsworths happy.