New accountant, IR35

[Clare@InTouch]

Apologies - I just found the price £99! I am guessing you are recommending QDOS?

Is it worth reviewing a contract retrospectively? I have already completed the contract. The agent indicated that they try to draw up their contracts IR35 friendly when I signed it.

All agents says that. Some have a better understanding of IR35 than others.

It's also worth noting that IR35 depends on what you actually do, NOT what the written contract says. Agency contracts are standard, and don't tend to represent the true position. You need a review that takes that into account, and asks about your working conditions.

[CodeCobbler]

All agents says that. Some have a better understanding of IR35 than others.

It's also worth noting that IR35 depends on what you actually do, NOT what the written contract says. Agency contracts are standard, and don't tend to represent the true position. You need a review that takes that into account, and asks about your working conditions.

Then if the contract is over it doesnt matter?

[northernladuk]

QDOS charge around £240 for PI/PL. Worth having for IR35 and peace of mind but they also do 3 free contract reviews a year. Not sure about other companies. Baur & Cotteral and SJD also offer contract reviews.

[Clare@InTouch]

Then if the contract is over it doesnt matter?

HMRC can still go back if the contract is over, as far as 6 years in some cases. If they decided to investigate this contract they'd ask questions of you, then of the client, and come to their conclusion based on the theoretical contract that exists between you. You therefore need to be aware of what the client would say when questioned, and keep notes to back up your position. The agency is just a middle man, and HMRC know that. If the agency say you can substitute and the client say you can't, HMRC (and the Courts) would go with the client.

Google Confirmation of Arrangements Letter, or look for it on the Qdos website.

[LisaContractorUmbrella]

Have we got an IR35 basics sticky? If not I can't help thinking it might be a good idea

[northernladuk]

Have we got an IR35 basics sticky? If not I can't help thinking it might be a good idea

I don't think it is. It is too complex to be covered by a basic stickly. A little knowledge will be a dangerous thing. Bearing in mind it goes to the very core of what we do I think you need to know a lot about it, not the basics. People will just read it and ask stupid questions without researching.

That's my thinking anyway.

[CodeCobbler]

HMRC can still go back if the contract is over, as far as 6 years in some cases. If they decided to investigate this contract they'd ask questions of you, then of the client, and come to their conclusion based on the theoretical contract that exists between you. You therefore need to be aware of what the client would say when questioned, and keep notes to back up your position. The agency is just a middle man, and HMRC know that. If the agency say you can substitute and the client say you can't, HMRC (and the Courts) would go with the client.

Google Confirmation of Arrangements Letter, or look for it on the Qdos website.

So the contract needs to say something to the effect of the Confirmation of Arrangements Letter? I can see of lot of people NOT willing to get involved and sign a confirmation of arrangements letter.

[LisaContractorUmbrella]

I don't think it is. It is too complex to be covered by a basic stickly. A little knowledge will be a dangerous thing. Bearing in mind it goes to the very core of what we do I think you need to know a lot about it, not the basics. People will just read it and ask stupid questions without researching.

That's my thinking anyway.

You're probably right NLUK - it's just a bit worrying how little knowledge people have - we even had a consultant at a recruitment company telling us that they'd 'opted-out' of IR35

[LisaContractorUmbrella]

So the contract needs to say something to the effect of the Confirmation of Arrangements Letter? I can see of lot of people NOT willing to get involved and sign a confirmation of arrangements letter.

As Clare has tried to explain - the contract is not the determining factor in the event of an investigation - it's your working practises and the level of supervision, direction and control that the client has over them that will determine your status. Changing the details of a contract after the event would definitely not score you any brownie points with HMR&C if they decided to come and visit

[Clare@InTouch]

So the contract needs to say something to the effect of the Confirmation of Arrangements Letter? I can see of lot of people NOT willing to get involved and sign a confirmation of arrangements letter.

No, the contract doesn't need to refer to the letter at all, and it's unlikely the agency will change their terms anyway. The agency have very little to do with any IR35 decision, it's what happens at the Client end that matters.

The letter is something totally separate that you try to get in place with your client. You set out the real terms, as in "I have total control" and "I can substitute as often as I like" and ask a contact at the client to sign. This will offer superb proof if you ever need it, way more than a standard agency contract would.