Change in contract, how can I still avoid IR35?

[emjharts]

I have my own limited company and work from home for clients invoicing them as and when for the work and occasionally travelling to their offices for meetings.

Now one of my clients has offered me a daily rate contract to work solely for him in his office Monday to Friday and I'm wondering whether this would mean that I would now come under IR35? I would be using my own equipment and not his equipment but I would be working everyday in his office.

If this does mean that I would be viable for IR35 then is there anyway that I can change this, for example, not sign a contract but instead invoice him at the end of each month as I have been doing but instead of invoicing for work done, invoice for the daily rate of working in his office mon-fri?

Any advice would be greatly appreciated as I need to make a decision on this.

Thanks!

[Martin at NixonWilliams]

I have my own limited company and work from home for clients invoicing them as and when for the work and occasionally travelling to their offices for meetings.

Now one of my clients has offered me a daily rate contract to work solely for him in his office Monday to Friday and I'm wondering whether this would mean that I would now come under IR35? I would be using my own equipment and not his equipment but I would be working everyday in his office.

If this does mean that I would be viable for IR35 then is there anyway that I can change this, for example, not sign a contract but instead invoice him at the end of each month as I have been doing but instead of invoicing for work done, invoice for the daily rate of working in his office mon-fri?

Any advice would be greatly appreciated as I need to make a decision on this.

Thanks!

Hi emjharts,

It is not as simple as that unfortunately!

I would suggest that you have your contract reviewed by a specialist, they will be able to form an opinion on your IR35 status based on the contract and your working practices.

Although use of equipment is a factor, it would not determine your IR35 status.

Note that although the absence of a written contract would typically improve your position from an IR35 point of view, this does not protect you from IR35 altogether.

I hope this helps.
Martin

[TheFaQQer]

Sounds like you need to read up on IR35.

What is it about your current contracts that makes you think they are outside IR35? What is it about your potential contract which makes you think it would be inside IR35?

[LisaContractorUmbrella]

I have my own limited company and work from home for clients invoicing them as and when for the work and occasionally travelling to their offices for meetings.

Now one of my clients has offered me a daily rate contract to work solely for him in his office Monday to Friday and I'm wondering whether this would mean that I would now come under IR35? I would be using my own equipment and not his equipment but I would be working everyday in his office.

If this does mean that I would be viable for IR35 then is there anyway that I can change this, for example, not sign a contract but instead invoice him at the end of each month as I have been doing but instead of invoicing for work done, invoice for the daily rate of working in his office mon-fri?

Any advice would be greatly appreciated as I need to make a decision on this.

Thanks!

What will you be doing? will you be working under his supervision, direction and control, are there permies there doing the same or similar job, could you provide a substitute if you couldn't be there for any reason? Will you be obliged to turn up 9-5 Mon-Fri? Will he be obliged to provide you with work?

[jamesbrown]

Note that although the absence of a written contract would typically improve your position from an IR35 point of view

Hmmm, not sure about that. The reality of the situation is what matters. It may avoid problems like inconsistency between the upper and lower contracts in an agency scenario, but I cannot see an agency involved in this type of arrangement. Even direct, this would make IR35 the least of my concerns. I assume the OP has a PO and provided his T&Cs, but it's still pretty iffy working without a contract unless you're direct to a client that you really trust. From an IR35 POV, I'd say it was neutral, but tougher to make the case of being outside initially.

Anyway, to the OP, none of what you say makes much difference in itself. You should've had your previous arrangement reviewed (tough without a contract ) and this new arrangement would also need to be reviewed.

[Martin at NixonWilliams]

Hmmm, not sure about that. The reality of the situation is what matters.

I agree - the absence of a contract would only result in greater scrutiny being placed on the working practices.

I wasn't very clear but my point earlier was that from a reviewers perspective, engagements without contracts are typically considered outside of IR35. I am yet to see one that is considered caught.

Having said that, it would be extremely difficult for a reviewer to perform their review without a contract as their opinion could only really be formed based on the workers own view of their working practices.

[mudskipper]

I think the concern was that turning up Mon to Friday for one client would put OP inside IR35.

In truth, it's probably less 'safe' than the work from home / multiple clients model, but it is what most of us do whilst working outside IR35.

Read up on IR35, get your contract reviewed, be vigilant about working practices, take out insurance (PCG+ or QDOS) and carry on.