Originally posted by Denny
In my experience most contracts fall within ir35 (even the so called "outside ir35 contracts") and require certain tweaks to bring them in favour of being outside of ir35. Some agencies are oblivious to the ever changing tax trends and do not even entertain proposed changes to their agreements. I feel a lot of agents are too scared to upset the client to even ask for changes to their agreements. I have experienced many a scenario where the agent has said that the client won't change their contract (without even considering to present a proposal to the client even if it meant that the contract in its current format could have detrimental implications to them too), although they will be happy to change theirs??, despite for example direction, supervision and control being a clear issue within the written chain.
Of course I appreciate that it is simply not a case of ensuring that the contract is worded correctly and that the commercial reality of the situation would also be taken into account, but ensuring that the contract is as watertight as possible is a damn good starting point as far as I am concerned.
For the newbie contractors or lower earning bracket whose contracts fall within ir35 I would recommend to go umbrella, but for the more seasoned contractors particularly the high end earners who are confident that their contract is fully outside of ir35 and would stand up to the tests of self employment then limited co or managed limited is probably the best route to take.
Comment