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Can you be a contractor without a written contract

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    Can you be a contractor without a written contract

    Hi all

    Hypothetically if I had my own limited company, and a company wanted to use my services for which I would invoice them (no agent involved), then is there any requiremnt to actually have a written contract with the client?

    There seems to be loads of talk here about making sure one's contract is IR35 "friendly", wth the correct wording in terms of rights of substitution, lack of supervision and control etc.

    As I understood it, a contract can be verbal, so (and I mean with IR35 in mind) is it sensible practice for one to just invoice one's client periodically for work carried out? i.e. much in the same way as a plumber or builder would? Would anyone foresee problems in doing this? Surely the fact that you are providing services for a company with no written contract is preferable in that there can be no obligations either way or am i missing something?

    #2
    Don't just have a verbal agreement, you're open to being abused.

    You don't however need a contract. Get the client to write you a purchase order for your services. That way they agree in writing that they will be paying you for specific deliverables.
    Listen to my last album on Spotify

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      #3
      IR35 is not about the written contract. You can have the most water tight contract in the world and still get 35ed.

      It is about the real working situation. Having no contract can be a good thing.
      Getting a purchase order would be a good idea.
      Putting in a writen bid with your own terms and conditions just stating the services and deliverables you will provide without stating how you will do them might help.
      I am not qualified to give the above advice!

      The original point and click interface by
      Smith and Wesson.

      Step back, have a think and adjust my own own attitude from time to time

      Comment


        #4
        Written Contracts

        Quite aside from the significant commercial and enforceability benefits of having clear written terms, in our experience it is always preferable to have recourse to a written contract when disputing IR35 status with the Revenue. 'Verbal' contracts leave the position ambiguous, and the Revenue has no choice but to interview all the relevant parties and this can be far more time-consuming without having written terms as a starting point.
        Regards,
        James

        Lawspeed Limited
        Any views or opinions expressed herein may be solely those of the originator and are not necessarily the views or opinions of Lawspeed or its Directors. Copyright © Lawspeed Limited 2007

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