IR35 review question

[northernladuk]

Read up on Confirmation of Arrangements Letters. That might help with the working practices, though good luck trying to get one signed by the right people.

[Jessica@WhiteFieldTax]

Having a contract compliance checked for IR35 will absolve you of absolutely nothing I'm afraid.

I'd disagree, I'm afraid Lisa.

It absolves the **employer company** of nothing, but as a due diligence exercise it may stave off personal liability at a later date. We've had one IR35 fail case successfully fought off by Accountax on the basis -company was in process of closing, HMRC served personal liability notices, they were rescinded.

[LisaContractorUmbrella]

I'd disagree, I'm afraid Lisa.

It absolves the **employer company** of nothing, but as a due diligence exercise it may stave off personal liability at a later date. We've had one IR35 fail case successfully fought off by Accountax on the basis -company was in process of closing, HMRC served personal liability notices, they were rescinded.

What I meant was - if you have a compliance check and you were found to be inside (as the OP was indicating) then the fact that you had had a review would avail you of nothing in the event that you worked outside but an HMR&C inspection later found you to be inside

[Jessica@WhiteFieldTax]

What I meant was - if you have a compliance check and you were found to be inside (as the OP was indicating) then the fact that you had had a review would avail you of nothing in the event that you worked outside but an HMR&C inspection later found you to be inside

Agree on that

[kevpuk]

I recently had my current contract reviewed - twice, actually.
Accountants offer review service, and felt that it was all OK....however, having myco insurance via QDOS allowed me to get them to review = came back as 'borderline fail'. However, the points QDOS bods picked up on were very marginal (hence the borderline, I guess) and were as simple as swapping wording one clause between 'agreement' and 'consent', ensuring contract clearly signed 'on behalf of' myco, rather than personally and another thing i can't recall.
I went back to agents with the review, and asked what changes they would consider/could make, and they agreed to them all and issues new contract - the clause I can't recall was actually just removed from the contract! Have to say, the agents were very accomodating with me

[LisaContractorUmbrella]

I recently had my current contract reviewed - twice, actually.
Accountants offer review service, and felt that it was all OK....however, having myco insurance via QDOS allowed me to get them to review = came back as 'borderline fail'. However, the points QDOS bods picked up on were very marginal (hence the borderline, I guess) and were as simple as swapping wording one clause between 'agreement' and 'consent', ensuring contract clearly signed 'on behalf of' myco, rather than personally and another thing i can't recall.
I went back to agents with the review, and asked what changes they would consider/could make, and they agreed to them all and issues new contract - the clause I can't recall was actually just removed from the contract! Have to say, the agents were very accomodating with me

And how accurately does the contract reflect your working practises

[northernladuk]

I recently had my current contract reviewed - twice, actually.
Accountants offer review service, and felt that it was all OK....however, having myco insurance via QDOS allowed me to get them to review = came back as 'borderline fail'. However, the points QDOS bods picked up on were very marginal (hence the borderline, I guess) and were as simple as swapping wording one clause between 'agreement' and 'consent', ensuring contract clearly signed 'on behalf of' myco, rather than personally and another thing i can't recall.
I went back to agents with the review, and asked what changes they would consider/could make, and they agreed to them all and issues new contract - the clause I can't recall was actually just removed from the contract! Have to say, the agents were very accomodating with me

Don't want to be funny but looking at the difference between those two words it could have been the substitution clause so removing it would make it a fail. Did you get it reviewed after the changes? Removing clauses isn't always a good thing. Have the changes made that are recommended and nothing else.

[NibblyPig]

Some good advice in here, thanks.

I imagine based on what I've read that regarding working practices vs. contract that in many cases there won't be a working practice and the contract will be the only thing you can go on. Eg. a substitution clause, unless you actually use it (and I would be interested to hear of someone actually invoking it) , it'll be something that's purely in your contract but quite important.

I don't disagree though, they're just as much going to look and see if you're doing what you agreed on

I've looked at the confirmation of arrangements doc, but as a software developer I'm not sure I'd be able to comply with many of the clauses. I find it hard to believe that many employers would agree to a substitution clause, subcontracting clause, letting them work from home, or letting them use their own equipment, but I am a noob so what do I know I just wonder if that document would do more harm than good in some cases.

[kevpuk]

Don't want to be funny but looking at the difference between those two words it could have been the substitution clause so removing it would make it a fail. Did you get it reviewed after the changes? Removing clauses isn't always a good thing. Have the changes made that are recommended and nothing else.

I'll dig out the actual review email, and put up the relevant bits.....tbh, it all kind of made sense to me, from a layman's perspective.
As far as working practices go, very broadly, there is a project of which I am the sole member of; discretionary approach to workstack defined, in terms of how I go about it and - to a degree - what order; once the project contents are completed, there is nothing left to do; I have the right to provide a sutbstitute....think that is about all I can go with from my short time in the gig

[LisaContractorUmbrella]

Some good advice in here, thanks.

I imagine based on what I've read that regarding working practices vs. contract that in many cases there won't be a working practice and the contract will be the only thing you can go on. Eg. a substitution clause, unless you actually use it (and I would be interested to hear of someone actually invoking it) , it'll be something that's purely in your contract but quite important.

I don't disagree though, they're just as much going to look and see if you're doing what you agreed on

I've looked at the confirmation of arrangements doc, but as a software developer I'm not sure I'd be able to comply with many of the clauses. I find it hard to believe that many employers would agree to a substitution clause, subcontracting clause, letting them work from home, or letting them use their own equipment, but I am a noob so what do I know I just wonder if that document would do more harm than good in some cases.

'Working practises' refers to the way that your business conducts itself and the relationship that exists between it and the end client. 3 main considerations:

Mutuality of obligation - are you obliged to accept work when offered?
Supervision, direction and control - how much control does the client have over the work you do
Right of substitution - could you provide a substitute if you could not attend and do you actually know someone who could act as substitute for you.

You need to consider all of the above when determining whether you work inside or outside of IR35