Days before contract renewal

[Einstein Jnr]

Yes working through own LLC - I got the contract renewed after signing by the one free QDos review I had from taking on their insurance services. It failed on the substitution clause - should I push for this to be changed before renewing or is that ruffling feathers? The contract review concluded by stating I am not automatically caught in IR35, but the contract is weak. Thoughts?

[northernladuk]

Yes working through own LLC - I got the contract renewed after signing by the one free QDos review I had from taking on their insurance services. It failed on the substitution clause - should I push for this to be changed before renewing or is that ruffling feathers? The contract review concluded by stating I am not automatically caught in IR35, but the contract is weak. Thoughts?

Wow... There is so much wrong in this post I am not sure where to start... but lets go....

It would be good to understand LLC and LTD.....

So you had the contract reviewed AFTER you started? How did that happen?

Your contract failed IR35 but you carried on working. Do you know what IR35 is to understand exactly what you failed and the ramifications of you continuing to work? Please please please say you do.

You don't want to ruffle feathers so you'd rather stay inside IR35?

If the contract was weak to start of with it then working practices have blown it out of the water I am afraid. I'm surprised QDOS didn't point out the lack of a schedule in the work as well but I would guess they didn't assume you would just be taking work on willy nilly either.

There is far too much to try and explain and put right here as IR35 is pretty complex but I'd strongly advise you spend the weekend reading all the IR35 information in the newbie guides to the right and then find some more resources on the web to read. Also read all the other articles on the right to find out what you don't know about as well..

You are in an extremely tricky situation so don't think it's something you can ignore.

EDIT : This guide for newbies looks very good actually. Didn't read the detail but seems to present it simply.
https://www.professionalpassport.com...de_IR35_v5.pdf

[VillageContractor]

Wow... just wow.

It might sound harsh but I don't think you understand how contracting works and need to either brush sharpish or go back to permanent

[VillageContractor]

And also grow a backbone

[northernladuk]

Wow... just wow.

It might sound harsh but I don't think you understand how contracting works and need to either brush sharpish or go back to permanent

I'd say that's just a straight forward comment about the OPs choices. Harsh would be to point out it's this situation and the army of similar ones thats got HMRC interested and making life difficult for the rest that do know what they are doing.

[clearedforlanding]

I'd say that's just a straight forward comment about the OPs choices. Harsh would be to point out it's this situation and the army of similar ones thats got HMRC interested and making life difficult for the rest that do know what they are doing.

Which is an argument for helping newbies as much as possible on this forum.

Sean, follow NLUK's advice, period. I'll forgive you confusing LLC & LTD as you are from the US, but the rest of it is setting you up for disaster.

[jbond007]

Yes working through own LLC - I got the contract renewed after signing by the one free QDos review I had from taking on their insurance services. It failed on the substitution clause - should I push for this to be changed before renewing or is that ruffling feathers? The contract review concluded by stating I am not automatically caught in IR35, but the contract is weak. Thoughts?

I hope you continue posting and don't get ruffled with some of the posts here. While there is truth in what the other posters have said, their tone could be off-putting for newbies (or may not depending on how thick your skin is)

What you've got to do is get yourself into so what happens now mode:

- Being within IR35 isn't a doom and gloom scenario, per se. It means you will be liable for the same tax as a permie would be based on your billing (it would be closer to doom & gloom if you cannot pay the additional taxes)
- IR35 applies per contract, though it seems you've been with this clientco for 18 months ? It seems very likely that full 18 months are within IR35
- There are calculators out there (just google IR35 calculator) which tell you what your liability is if working within IR35
- You've then got to decide whether you are happy to continue working with this clientco within IR35. There is nothing wrong with working within IR35 (as long as you are happy to pay the appropriate taxes)
- If you decide you would rather work outside IR35, you've got two options
a) Draft a new contract which is project specific spelling out schedule or work
b) Don't renew, look for another contract and ensure that one is outside IR35

Take this on the chin as a learning experience, yes it will cost you a fair amount but as long as you can afford to pay that, don't let it get you down. Learn from it, read up about it and you'll come out more confident as a contractor

[seanraaron]

Which is an argument for helping newbies as much as possible on this forum.

Sean, follow NLUK's advice, period. I'll forgive you confusing LLC & LTD as you are from the US, but the rest of it is setting you up for disaster.

Baby Einstein was the OP, I'm the one who doesn't know (or care) what the difference is between an LLC and an Ltd is. I was just saying, the IR35 stuff matters if you've got your own company, effectively.

[BrilloPad]

Why would you not look round?

[northernladuk]

Baby Einstein was the OP, I'm the one who doesn't know (or care) what the difference is between an LLC and an Ltd is. I was just saying, the IR35 stuff matters if you've got your own company, effectively.

Why don't you care about the fundamental tool you use for contracting? That's just stupid and as a director you'd be failing in your legal duty.