Bonus and IR35 - no bonus wording in contract

[synariasol]

Hi,

I am currently working on a project and used the PCG "...working directly with client" contract template for it. Until recently, I was the only contractor in the team as an additional resource while they looked at recruiting some more permie developers. I also joined to help out with a new module that is being developed. Another developer has recently joined to work on another part of the system. We work in an Agile environment of 4 weeks iterations. There are 3 iterations for this particular piece of work.

When I started the work, there was no mention any kind of bonus. However, due to a delayed started and a deadline that has not changed, the company are now offering a bonus to everyone for putting in extra hours to get the work done - a bonus for each iteration completed (completed requirements) with an extra for completing all 3 iterations by the deadline. This therefore means there is nothing in my contract to say there will a bonus paid. Should there be? Should I accept it?

To me it doesn't seem right to accept it as, personally, I see such things as a permie benefit. I have spoken to my accountant who seem to think it would OK, but also seem to be giving me a "standard" response about IR35 and contracts. Does anyone agree or disagree that I can accept it? Just looking for a second opinion.

Thanks for your help in advance.

[northernladuk]

If it isn't in your contract and the permies are getting it then I can see how it could be an IR35 problem but just invoice them for it. It is extra payment for extra hours. Simple.

Did you actually ask if this included contractors. I can't see them paying a bonus with no invoice or anything? I didn't think their finance systems would even allow it... anyway... Stick invoice in, titled extra time or something and bobs your uncle I would have said.

[Jessica@WhiteFieldTax]

TBH, you could argue either way regarding IR35.

I'm sure HMRC would come up with a case that its a permi thing, but I honestly don't think it would carry much weight either way at Tribunal. It certainly wouldn't sink you.

My only thought is get something in writing saying its linked to accelerated targets and/or additional inputs.

[Qdos Contractor]

I would simply avoid referring to it as a 'bonus'; call it a 'completion payment' or something similar and, as NLUK says, invoice them for it.

Won't cause you any major problems, but a 'bonus' is something associated with employment and we've had instances of HMRC picking up on it.

[FWDiane]

Agree with Qdos posting. Raise an invoice, with the wording early completion payment, or similar. Certainly we have had clients who have raised similar in the past.

[VirtualMonkey]

I would simply avoid referring to it as a 'bonus'; call it a 'completion payment' or something similar and, as NLUK says, invoice them for it.

Won't cause you any major problems, but a 'bonus' is something associated with employment and we've had instances of HMRC picking up on it.

This.
I received a similar 'contract signing payment' when I agreed to change payment terms at renewal.
Just invoice and carry on