IR35 review question

**northernladuk** · 15 April 2013, 12:07

Originally posted by NibblyPig View Post

So I'm brand new to contracting, and I've been reading all the links on the site and perusing the forums for information about IR35. In the newbie guide on the homepage, it says you should always get your contract reviewed for IR35.

Is this correct, considering most of it seems to be straightforward. I'm not an expert, but there are guides online of what IR35 is all about and what counts as in/out and what will help your case to be outside IR35 and also inside. I'd have thought you'd immediately be able to tell yourself if your contract is in or out?

IR35? Straight forward? What on earth have you been reading? Bearing in mind it says get your contract reviewed by an IR35 specialist what makes you think you can immediately tell. The fact you admit you are not an expert gives you reason to go find a professional surely.

The main question I have though is, assuming you get your contract reviewed, what then? I haven't got a contract yet, but assuming I do, they'll give me it and say 'please sign this'. At that point I could go and get it reviewed I assume, but if it comes back as inside IR35, what do I do? Realistically, are they likely to let me change it, or will the people that are reviewing it rewrite it as part of the review? Or does having it reviewed/change absolve me of liability if I get in trouble for it later on?

Thanks for any advice

Bit more research required. Try using the search option detailed here and do a search for 'QDOS review' or something similar.

**LisaContractorUmbrella** · 15 April 2013, 12:27

Originally posted by NibblyPig View Post

So I'm brand new to contracting, and I've been reading all the links on the site and perusing the forums for information about IR35. In the newbie guide on the homepage, it says you should always get your contract reviewed for IR35.

Is this correct, considering most of it seems to be straightforward. I'm not an expert, but there are guides online of what IR35 is all about and what counts as in/out and what will help your case to be outside IR35 and also inside. I'd have thought you'd immediately be able to tell yourself if your contract is in or out?

The main question I have though is, assuming you get your contract reviewed, what then? I haven't got a contract yet, but assuming I do, they'll give me it and say 'please sign this'. At that point I could go and get it reviewed I assume, but if it comes back as inside IR35, what do I do? Realistically, are they likely to let me change it, or will the people that are reviewing it rewrite it as part of the review? Or does having it reviewed/change absolve me of liability if I get in trouble for it later on?

Thanks for any advice

Having a contract compliance checked for IR35 will absolve you of absolutely nothing I'm afraid. IR35 determines whether or not you pay tax through PAYE or draw dividends from your Ltd Co - therefore, if you get it wrong, there is a liability for underpaid tax for which you would have to cough up.

You can ask to have a contract amended but if your working practises show you to be a disguised employee i.e. inside IR35 it won't make a scrap of difference.

And as NLUK says - IR35 is anything but straight forward. Perhaps you would be better of with an umbrella company for a few months until you can understand all the implications of running your own company

**NibblyPig** · 15 April 2013, 12:30

Hmm, I did do some searching. But neither of my two questions were answered anywhere that I could see. Do contractors on here usually pay for a review for IR35, and if the review says "you're probably inside IR35", what do they then do about it?

**LisaContractorUmbrella** · 15 April 2013, 12:31

Originally posted by NibblyPig View Post

Hmm, I did do some searching. But neither of my two questions were answered anywhere that I could see. Do contractors on here usually pay for a review for IR35, and if the review says "you're probably inside IR35", what do they then do about it?

Yes you would pay for a review and if you're inside then you pay yourself through PAYE or you ignore the advice and make sure you have a substantial war chest

**NibblyPig** · 15 April 2013, 12:39

So is it generally impossible to get your contract changed then after a review?

I can see companies having a standard contract and being very wary of letting the client propose some changes that would make you outside of IR35, even though they may take away power from the contractor by making them more expendible.

I'm curious to know if people have successfully proposed changes to a contract they have received or if rocking the boat is generally considered a bad idea and they should just roll with it.

**jmo21** · 15 April 2013, 12:42

Originally posted by NibblyPig View Post

Hmm, I did do some searching. But neither of my two questions were answered anywhere that I could see. Do contractors on here usually pay for a review for IR35, and if the review says "you're probably inside IR35", what do they then do about it?

I get 3 free contract reviews a year through QDOS who I have my co insurances with.

Only once have they found an issue, and it was minor.

I told the agent, they said no problem, and changed it.

On the other hand, I've heard stories on here of agencies point blank refusing to make changes, "no contractor has ever complained about this before" etc etc.

Bauer & Cottrell, a well known provider for contractors will I believe phone the agency to argue the case for you. Not sure if QDOS do this or not. You can look these up.

**northernladuk** · 15 April 2013, 12:44

Originally posted by NibblyPig View Post

Hmm, I did do some searching. But neither of my two questions were answered anywhere that I could see. Do contractors on here usually pay for a review for IR35, and if the review says "you're probably inside IR35", what do they then do about it?

Do the search I told you. Lots of discussions about how much people pay, how many people do it and what they have done about it. At least 2 of the posts in the top 5 results discuss your exact questions. I know it is hard work for you but it will help.

**NibblyPig** · 15 April 2013, 12:45

Originally posted by jmo21 View Post

I get 3 free contract reviews a year through QDOS who I have my co insurances with.

Only once have they found an issue, and it was minor.

I told the agent, they said no problem, and changed it.

On the other hand, I've heard stories on here of agencies point blank refusing to make changes, "no contractor has ever complained about this before" etc etc.

Bauer & Cottrell, a well known provider for contractors will I believe phone the agency to argue the case for you. Not sure if QDOS do this or not. You can look these up.

Thanks, this is great advice. I am probably going to go with QDOS to get insurance if I land a contracting role because the free reviews sound quite good and it seems other people on the forums approve of their price

**LisaContractorUmbrella** · 15 April 2013, 12:46

Originally posted by NibblyPig View Post

So is it generally impossible to get your contract changed then after a review?

I can see companies having a standard contract and being very wary of letting the client propose some changes that would make you outside of IR35, even though they may take away power from the contractor by making them more expendible.

I'm curious to know if people have successfully proposed changes to a contract they have received or if rocking the boat is generally considered a bad idea and they should just roll with it.

It's not impossible to change a contract but it's not really that you need to be worrying about - what counts are your working practises; that's what needs to change, not what's written on a piece of paper

IR35 review question