IR35 "Bullying" - Being pushed inside IR35 by Agency and Client

[BolshieBastard]

Have an interesting situation.

Just coming up on the 2 year mark on time with a client. Have had several extensions over that time and each one has involved specifying the project work to be done in that contract.

Now the client doesn't want to do this anymore and wants the contract to be 'generic' so that they can basically tell me what do to during the contract and change the project work as they see fit. This is despite the fact that the basis for entering into the contract is to engage on a specific project.

Now whilst that project can change, be cancelled, suspended, etc, it should be for the parties to agree on a change to the scope of work when that happens but it seems to make sense for the contract to be 'as specific' as possible for the benefit of all concerned. It also ensures from contract to contract that the work is clearly agreed upfront.

Problem is, the client is basically being lazy and doesn't want to be tied down like that. They don't care that the contractor could be caught inside IR35, and the agency is simply rolling with it, even though they know the downside for the contractor.

So, how to get the contract generic AND still keep it inside IR35 as to the work to be performed ? Anyone got any suggestions as to how to ensure the contract stays project-specific rather than 'BAU' and ensure my side is covered IR35 wise without ticking off the client who clearly wants things their own way or the highway ?

If an IR35 audit occurred, the client would definitely not say anything other than the work was BAU, which I believe it isn't. Its project work from my perspective as a supplier.

All suggestions welcomed.

Walk. Alternatively, stay and likely to be arse raped by HMRC should there ever be an IR35 enquiry.

[ctdctd]

Take salary just below tax threshold + expenses. Put the rest in a pension. IR35 proof

[BolshieBastard]

Take salary just below tax threshold + expenses. Put the rest in a pension. IR35 proof

Only if your expenses are 5% or less.

[ctdctd]

Only if your expenses are 5% or less.

What's that got to do with it?

The 5% expenses under IR35 are to cover admin costs - travel and accommodation expenses are allowed as normal.

Main point is that company contributions into a personal pension are IR35 proof.

[GB9]

Personally I would be out of this one like a scalded cat for a number of reasons...

I can't see a reason to leave that is anymore black and white than this one to be honest.

Spot on. Also make a note on any working practices document that you are moving on because the T&Cs changed so that you would no longer be operating as your own business. Always helps to have an example of where you have made a genuine business decision.

[AussieDigger]

All interesting points raised.

So I wonder if, should one accept their contract or put something around it like a Statement of Work (a good idea), that if one were caught inside IR35, would you then not have a recourse against the agency and/or client for being an employee ?

That is, is it not in the best interests of the client NOT to dictate projects on a 'BAU' basis such that they cannot have any chance of you coming back at them as an employee or seeking employee benefits ? Wonder if thats a card that can be played back at the agency and/or client ?

[northernladuk]

All interesting points raised.

So I wonder if, should one accept their contract or put something around it like a Statement of Work (a good idea), that if one were caught inside IR35, would you then not have a recourse against the agency and/or client for being an employee ?

That is, is it not in the best interests of the client NOT to dictate projects on a 'BAU' basis such that they cannot have any chance of you coming back at them as an employee or seeking employee benefits ? Wonder if thats a card that can be played back at the agency and/or client ?

Your situation has nothing to do with them, it is between you and HMRC now. The client has made his position clear, you either accept or don't. Doesn't matter what little clauses you put in, you either accept and are caught or you leave. There is no getting around this if the client sees you as an employee.