Providing Freelance / One-off Services via website - Contract Requirements

[ryan11]

Hey all

So I'm currently in a contract that's ending soon and luckily have a number of previous clients and potential new business looking for short-term (few days) work, once I'm available again.

I'm a Business Intelligence developer and my usual gigs are either process reengineering, consultancy on the product I specialise in or straight-up report/dashboard development.

I'm looking to advertise my services via my website and allow potential customers/clients to purchase them. My company is a Microsoft partner so I'd also offer the services through their marketplace

Would there be any IR35 implications for me or client in operating this way? They are essentially purchasing a service from my company. Is there a requirement for MSA/SOW etc or is this just something that gets baked into the t&c's of the purchase?

Just to clarify, I wouldn't be offering a contracting service or provision of labour, just straight-up outcome based work depending on what they purchase

[ladymuck]

Sounds like you don't understand IR35.

How you market / sell your products has nothing to do with IR35. How your clients engage your services does.

Your clients, assuming they are not small businesses, will still need to do a role assessment for the work they want you to do. They will still need to draw up a contract and agree ways of working to support that assessment outcome (if it is an outside assessment).

[ryan11]

Sounds like you don't understand IR35.

There are some elements of it I do understand quite well but yes, some gaps in knowledge also - which is why I thought I'd try the forum.


I'm trying to pre-empt the type of questions I might get from a customer.


If I sell a service on my website for example: "Microsoft Power BI Audit", which is a one-off service, for a one-off cost, carried out by my company which takes 2 days, would the client need to carry out an IR35 determination for that small piece of work that they have purchased from my company?

It's a pre-packaged offer/service with terms and conditions and an NDA. In this example, a requirement for the customer would be to answer a questionnaire and provide a selection of their assets for review. There may then be phone calls and other interaction if we need it.

[eek]

There are some elements of it I do understand quite well but yes, some gaps in knowledge also - which is why I thought I'd try the forum.


I'm trying to pre-empt the type of questions I might get from a customer.


If I sell a service on my website for example: "Microsoft Power BI Audit", which is a one-off service, for a one-off cost, carried out by my company which takes 2 days, would the client need to carry out an IR35 determination for that small piece of work that they have purchased from my company?

It's a pre-packaged offer/service with terms and conditions and an NDA. In this example, a requirement for the customer would be to answer a questionnaire and provide a selection of their assets for review. There may then be phone calls and other interaction if we need it.

Clearly defined products that are fully under your control aren't a problem for IR35.
T&M projects that don't have defined outcomes are.

[malvolio]

Clearly defined products that are fully under your control aren't a problem for IR35.
T&M projects that don't have defined outcomes are.

Exactly. If you can break your offerings down into a set of discrete services with either a fixed price or a scale of charges, and offer them under a single set of Ts&Cs with supporting legal stuff (penalties, PI/PLI cover, NDA, IPR and the like) then you have a business, not a contractor BoS provision. Just be prepared to be taken on through Procurement rather than Human Remains, with consequently longer payment terms.

[ladymuck]

As a point of interest, where is the line in the sand that says "this is a contract which needs assessing under IR35" and "this is a contract where IR35 is not applicable"?

I didn't think it was so clear cut as you guys are describing.

[eek]

As a point of interest, where is the line in the sand that says "this is a contract which needs assessing under IR35" and "this is a contract where IR35 is not applicable"?

I didn't think it was so clear cut as you guys are describing.

There is no line in the sand, its all shades of grey.

I intentionally picked the product example because it's clear cut - we send someone in for x hours / days and generate a Powerpoint report / provide you with a first prototype app for that process. And it is that report / app the company is buying.

The issue really kicks off when you are the person expected to appear the following day..

[malvolio]

As a point of interest, where is the line in the sand that says "this is a contract which needs assessing under IR35" and "this is a contract where IR35 is not applicable"?

I didn't think it was so clear cut as you guys are describing.

Because it isn't - as is almost anything to do with IR35.

Unless the end client - which is the entity providing the money at the head of the chain - can claim the small company exemption - itself defined by turnover and head count - then it has to assess every role under Section 10 ITEPA and make a decision under the perfectly clear (not) rules defining employment. Most don't, they ether duck the whole thing and pretend they are not dealing with PSCs or they make an assessment according to their own parameters and decide everyone is inside.

Either way, unless the small company client rules applies, it is not our call and therefore is very black and white: the role is or isn't caught under Section 10.

If the small company exemption does apply, then it's Section 8 (the old rules) and the contractor makes the decision.

So from our perspective it actually is fairly clear cut. Most of the angst is people trying to second guess the situation.