Contracting/IR35 woes - first time arrangement

[Befuddled88]

OK - so who is paying you via PAYE? If you are on the agency payroll, then IR35 is an irrelevance. Whether the contract would put you inside or out is a moot point - if you are an employee of someone, then they dictate how you are paid.


So find out where the confusion is coming from - if someone is paying you via PAYE then IR35 does not apply.


As long as they work for HMRC, then you can be certain they are right. If they don't, then all they are offering is an opinion. Some contractors I know who have been contracting for quite some time have absolutely no knowledge of IR35, and the concept of having a contract reviewed is alien to many.

Thank you, this is really valuable help.

To put it into context, I have not been paid at all this tax year (therefore not even by this agency). I was awaiting to invoice the agency. The agency told me that I was able to invoice in lieu of PAYE, but this was not setout in writing.

I had a review with inTouch accounting, where she essentially said as it's a "temporary workers" contract and being paid via PAYE, I would not be eligible to benefit from being outside IR35.

[DirtyDog]

Thank you, this is really valuable help.

To put it into context, I have not been paid at all this tax year (therefore not even by this agency). I was awaiting to invoice the agency. The agency told me that I was able to invoice in lieu of PAYE, but this was not setout in writing.

I had a review with inTouch accounting, where she essentially said as it's a "temporary workers" contract and being paid via PAYE, I would not be eligible to benefit from being outside IR35.

OK - speak to the agency and tell them that they have sent you the wrong contract. Explain that you will be setting up a Ltd company, so will be invoicing as a Ltd rather than being paid via PAYE by them.

Then get InTouch to sort out company creation etc. (I assume that they do that, most accountants do).

[Befuddled88]

OK - speak to the agency and tell them that they have sent you the wrong contract. Explain that you will be setting up a Ltd company, so will be invoicing as a Ltd rather than being paid via PAYE by them.

Then get InTouch to sort out company creation etc. (I assume that they do that, most accountants do).

I actually pre-emptively setup the company and agreed to an accountant, quite prematurely even though I felt my understanding was correct. I will contact them shortly and report back. Thank you

[Befuddled88]

Update!

So I spoke to my recruiter and he stated I need to provide him a Certificate of Incorporation and a PI certificate. This would then cancel my "temporary workers" contract and I would then begin invoicing the temp agency. He seemed to suggest there would be no contract remaining with the agent - are there draft template contracts I could peruse and provide them? I've seen conflicting opinions on whether not having a contract is good/bad for IR35. Any ideas?

So now next hurdle - I am a junior consultant with very little/no exposure to risk, and also average income - where can I compare PI insurance prices and find the cheapest?

Thanks guys, genuinely cannot thank you all enough.

[northernladuk]

So now next hurdle - I am a junior consultant with very little/no exposure to risk, and also average income - where can I compare PI insurance prices and find the cheapest?

https://www.google.co.uk/search?q=PI...sm=93&ie=UTF-8

[DirtyDog]

Update!

So I spoke to my recruiter and he stated I need to provide him a Certificate of Incorporation and a PI certificate. This would then cancel my "temporary workers" contract and I would then begin invoicing the temp agency. He seemed to suggest there would be no contract remaining with the agent - are there draft template contracts I could peruse and provide them? I've seen conflicting opinions on whether not having a contract is good/bad for IR35. Any ideas?

So now next hurdle - I am a junior consultant with very little/no exposure to risk, and also average income - where can I compare PI insurance prices and find the cheapest?

Thanks guys, genuinely cannot thank you all enough.

Qdos Consulting do insurance and have sample contracts.

PCG have sample contracts, and you have access to a discounted insurance policy through Randell Dorling.

Consider getting PCG+ membership anyway, since there are other benefits provided (agency failure cover, jury duty cover, tax investigation cover).