Absence of contract and IR35

[cannon999]

I am currently doing some work for a client without any written down contract and wondering whether that would have any IR35 implications going forward? It doesn't have any resemblance to an employee like arrangement, I get offered work - I can accept it or not and obviously there is no guarantee that I would actually get work (some weeks I do less work, so the pay is per hour). I subcontract certain bits out where sensible. It is a long-running arrangement (more than a year).

Wondering if I should tire myself with paperwork - is it safe to keep going? Or should I write something down.

[northernladuk]

Where is your evidence to give to HMRC so they can make a quick decision and leave you alone?
Where is your RoS and an agreement that the client also understands your RoS?
Where is the agreement showing its between the client and your Ltd and not your personally?

IR35, where is your notice, your payment schedules, notice periods, what insurances you should have in place?

You aren't a NoContractor are you? The clue is in our title. Working without paperwork is asking for trouble. Don't do it.

[cannon999]

Where is your evidence to give to HMRC so they can make a quick decision and leave you alone?
Where is your RoS and an agreement that the client also understands your RoS?
Where is the agreement showing its between the client and your Ltd and not your personally?

IR35, where is your notice, your payment schedules, notice periods, what insurances you should have in place?

You aren't a NoContractor are you? The clue is in our title. Working without paperwork is asking for trouble. Don't do it.

Better safe than sorry I suppose

[LondonManc]

Better gathering evidence than being hammered with retrospective tax

FTFY.

NLUK can be blunt but he makes some good points in your case.

You don't even need a formal contract, just a formal terms of engagement that both you and the client sign.

Limit it to, as NLUK suggest and you have intimated:
You have the right to provide a suitable substitute to do the work; any unsatisfactory work will be remediated at yourco's cost (shows both RoS and demonstrable financial risk).
Confirm you mutuality of obligation status - advise that it will help them going forwards that you are as distanced as possible as being regarded as an employee.
Wouldn't mention notice if there's no formal contract to give notice on. Call the document a "Supplier Agreement" instead.
Include payment terms, whatever they are now (e.g. within six weeks of submitted invoice).

Just use your common sense and don't make it look like a contract.

[cannon999]

FTFY.

NLUK can be blunt but he makes some good points in your case.

You don't even need a formal contract, just a formal terms of engagement that both you and the client sign.

Limit it to, as NLUK suggest and you have intimated:
You have the right to provide a suitable substitute to do the work; any unsatisfactory work will be remediated at yourco's cost (shows both RoS and demonstrable financial risk).
Confirm you mutuality of obligation status - advise that it will help them going forwards that you are as distanced as possible as being regarded as an employee.
Wouldn't mention notice if there's no formal contract to give notice on. Call the document a "Supplier Agreement" instead.
Include payment terms, whatever they are now (e.g. within six weeks of submitted invoice).

Just use your common sense and don't make it look like a contract.

Don't suppose you have a template to hand?

[LondonManc]

Don't suppose you have a template to hand?

For a fee.

Seriously, you don't need a template. I worked direct for a friend's company about six years ago. All I had was an email from them explaining payment terms, an NDA to sign on the IP that we were working on and an email confirming MoO status. Didn't even bother with RoS because there was no notice, no confirmation of anything. It was very loose. Some months I'd get 22 days some, 4. Once it got less than 10 in a month twice on the bounce, I was getting a bit bored and conveniently ended up getting a call out of the blue from an old hiring manager who had moved clients and been left in the lurch by someone. I bailed out that week, but did another month of finishing up bits and bobs across a few evenings and a couple of calls from my car at lunch times.

[northernladuk]

Don't suppose you have a template to hand?

IR35 Contract Templates - IR35 Resources - Qdos Contractor

[Old Greg]

I am currently doing some work for a client without any written down contract and wondering whether that would have any IR35 implications going forward? It doesn't have any resemblance to an employee like arrangement, I get offered work - I can accept it or not and obviously there is no guarantee that I would actually get work (some weeks I do less work, so the pay is per hour). I subcontract certain bits out where sensible. It is a long-running arrangement (more than a year).

Wondering if I should tire myself with paperwork - is it safe to keep going? Or should I write something down.

Purchase order, payment terms and statement of work (clearly defining B2B relationship and sub-contracting). I've done relatively small pieces of work on this basis before.

[jamesbrown]

IR35 is the least of your concerns if you’re working without a contract. As OG says, a purchase order alongside some rudimentary T&Cs and a SoW is fine for small jobs.

[Old Greg]

IR35 is the least of your concerns if you’re working without a contract. As OG says, a purchase order alongside some rudimentary T&Cs and a SoW is fine for small jobs.

Funnily enough, the only time I've ever done a piece of work with no paperwork (and it was 0.5 days that I did on my train commute for an existing client I knew very well), they tried to stiff me and not pay. So I invoiced them anyway and then they did pay. Unnecessary stress however.