IR35 - two very quick questions

[TheCyclingProgrammer]

I am in the CUK minority and never get contracts reviewed. However, you sound new? I would get your contract reviewed.

I don't either, although a) I don't work through agencies and b) my standard contract is based on the PCG contract so I'm pretty confident in it + my working practices.

If I was using agency contracts, I'd be getting each and every one reviewed unless I'd had the exact same contract before.

[TheCyclingProgrammer]

I also read that I should ideally invoice when I've delivered what I'm paid to. A regular invoice could look like a salary.

I'm sorry but no. In what way could it be construed as a salary? YourCo is invoicing the agency, who are then paying your invoice. It makes no difference whether you invoice weekly, fortnightly, monthly or on completion. Invoicing weekly is great for cash-flow - be happy!

[Old Greg]

I don't either, although a) I don't work through agencies and b) my standard contract is based on the PCG contract so I'm pretty confident in it + my working practices.

If I was using agency contracts, I'd be getting each and every one reviewed unless I'd had the exact same contract before.

I sometimes work via agencies and sometimes not. But my working practices are very clear. I usually have a contract for (e.g.) up to 80 days work between 1 January and 30 June and I usually have multiple clients at once. I decide where I work and (for example) have just declined a project with my current client, and of course that means we may part ways on good terms, but it is a very different relationship from employment. Some of it is a state of mind. If you don't feel like an employee, you don't tend to act like one, whereas if you spend your time worrying that you're like an employee then you need to have a rethink. All IMO of course.

[northernladuk]

Thanks.

You are all of course, correct in that I should get it reviewed. I am not qualified to make this call. However, I have read up on it a fair bit and my worries above stem from the point of control (I want to, and will, be able to work a 6 hour day or a 10 hour day depending on what I deem necessary). I just wanted to check that having "8 hours" stipulated doesn't make that sticky.

Yep but not unreasonable for a client to dictate how many hours he is willing to pay for. You can work 10 hours if you want, you just won't get paid for them. There is quite a grey area that sits between D&C and professional courtesy that can easily be argued. For example they say smart casual attire while on site which you do. D&C or courtesy?

I also read that I should ideally invoice when I've delivered what I'm paid to. A regular invoice could look like a salary. It's not realistic for me to invoice at the end of 6 months of course, but I have had some flexibility in all my other contracts. It's up to me when I send in the invoice. If I'm happy to wait 4-6 weeks, then I can. It look like I can't on this contract even if I wanted to.

Not correct at all and you need to be very clear in this distinction. What your client pays your business is absolutely in no way related to salary. It's money that belongs to the business. It's not salary until it is paid to you. A very important distinction. You could argue that paying dividends monthly is also like a salary.. but again just because something just happens to have a regularly monthly timescale it doesn't mean it is the same as something else. Yes payment upon delivery is the best IR35 situation but being paid regularly is not a problem. What business doesn't want to be paid regularly. Keep in mind 99.99999% of contractors will be billing regularly, be it 45,30,5 days or whatever.

I will get it reviewed though.

Please do. There is a term that can exist in RoS that makes it useless so very important to get right. If the client has the right to refuse your sub without reason then it's not worth the paper it's written on from an IR35 perspective.

[TheCyclingProgrammer]

I sometimes work via agencies and sometimes not. But my working practices are very clear. I usually have a contract for (e.g.) up to 80 days work between 1 January and 30 June and I usually have multiple clients at once. I decide where I work and (for example) have just declined a project with my current client, and of course that means we may part ways on good terms, but it is a very different relationship from employment. Some of it is a state of mind. If you don't feel like an employee, you don't tend to act like one, whereas if you spend your time worrying that you're like an employee then you need to have a rethink. All IMO of course.

I agree with all of that and have the same mindset as far as working practices go, I just wouldn't trust a typical agency contract to back up the working practices (and I do think its better to have both on your side).