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IR35 / REcruitment Agencies & Ltd

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    IR35 / REcruitment Agencies & Ltd

    Hi all,
    i have been hijacking another thread to find out what's the deal with recruitment agencies, Ltd and working outside IR35.
    Kindly, some members pointed me to guides/docs to undestand matter..
    Now, i have been going thru that materials during past hours... and what i figured out was that my assumptions were completely wrong....
    yes, i found out that actually being a Ltd and working via a Recruitment agency is not sufficient to be outside IR35.
    What matters is how are the various terms of contract....

    So, the new question is: how difficult is for contractors to stipulate a contract in such a way that they are outside IR35?
    I mean, do recruitment agencies / employers generally make it difficult for a contractor to draw a contract so that you are outside IR35?
    I work in IT... and was wondering what's the situation there...

    thanks in advance for any comments
    Marco
    Last edited by Contractor UK; 7 October 2011, 12:44.

    #2
    MMMMMMMmmmmmmmmmmm

    A nice Italian stallion.

    Comment


      #3


      but that alone won't help me in drawing a contract which is outside IR35...



      ciao

      Comment


        #4
        Fred, you guessed right .. but 'i work in IT' means actually i work
        in INformation Technology industry..

        Comment


          #5
          You will need to get any contract given to you checked by specialists in this kind of thing.

          Bauer & Cottrell or Accountax are 2 companies that do this kind of thing. They will review the contract and negotiate changes with the agency.
          "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
          - Voltaire/Benjamin Franklin/Anne Frank...

          Comment


            #6
            And then once your contract is vetted by Bauer & Cottrell or Accountax etc you can apply for insurance to protect against the costs of investigation. Try PCG for example.

            Comment


              #7
              Originally posted by TazMaN
              And then once your contract is vetted by Bauer & Cottrell or Accountax etc you can apply for insurance to protect against the costs of investigation. Try PCG for example.
              Ermm - the PCG insurance, unlike everyone else AFAIK, is not conditional, you only have to be a member to be covered.
              Blog? What blog...?

              Comment


                #8
                hello,
                thanks to all for useful replies.... i hate to bother with simple questions, but having been a permie for last 7 yrs i don't know exactly how contracting with agencies work and i appreciate if someone can clarify a little..
                How does it work?
                Let's say, i submit my CV to Hays, they find me a contract job...... with whom shall i sign that contract? with the agency or with the employer that is recruiting using that agency?
                secondly... normally opening positions for contract are with 'immediate start or with close start (let's say, a week) ... when the contract is given to me, as it was suggested with prev posts in this thread, i should pass it to my accountant to check it and 'rewrite it' eventually.... then i give it back to agency.... if the job has an immediate start... well i suppose they either reject it or accept it, not sure if there is time to go back and forth with accountants to write/rewrite etc..
                Sorry for being so 'demanding', but i plan to start contracting and i'd like to know what are the normal steps for contractors.... can anyone tell me how it works in practice?

                thanks and sorry for bothering
                regards
                marco

                Comment


                  #9
                  Usually you'll be sent an electronic copy of the contract (ask for one if not) and you forward it to B&C. They check it over, making sure the MOO, substitution and control clauses are all present and correct, if not they ask the agency to amend them. You'll then get a new contract and a report from B&C outlining why they think it's outside IR35. If you know the agency, it's generally OK to start working on site with the electronic version, if you don't know them it's normally best to wait for the paper copy, which you sign & return, then the agency Director signs it and return your signed copy for reference. Make sure the signed copy is the same as the electronic one, as the signed one is that which will be requested by Hector when the time comes to try and sting you for IR35. Clear?
                  His heart is in the right place - shame we can't say the same about his brain...

                  Comment


                    #10
                    Originally posted by MmarcoM
                    hello,

                    Let's say, i submit my CV to Hays, they find me a contract job...... with whom shall i sign that contract? with the agency or with the employer that is recruiting using that agency? marco
                    marco, basically the system is:

                    The agency will give you a contract which they 'proimise you' is IR35 compliant. It will probably not be. They will tell you it is not negotiable.

                    You have two choices. Sign it or call their bluff and risk having to walk away.

                    tim

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