Direct to client

[Guemlum]

I currently have a contract outside of IR35 but the project covered by the contract has ceased before the contract expiry date.

I am now in talks with another client who is classified as a small business where the off-payroll rules do not apply to them, and the responsibility now lies with me as the LTD company.

As I’m used to going through an intermediary, there is no middle man on this occasion, so what should I be aware of? I have all my insurances and a contract of services (direct to client) in place but is there anything else I should take into consideration that an intermediary has taken care of before? i.e. Status determination by me or the client?

Regards

[quackhandle]

Get your contract reviewed.

Google QDOS, but there are others.

qh

[ladymuck]

What does this...

I currently have a contract outside of IR35 but the project covered by the contract has ceased before the contract expiry date.

Have to do with this?

I am now in talks with another client who is classified as a small business where the off-payroll rules do not apply to them, and the responsibility now lies with me as the LTD company.

Other than nothing, or is there something you're not sharing.

Direct to the client contracts should be treated the same as all other contracts - you should do your due diligence about the client, get the contractual terms checked for IR35 and commercial clauses, make sure your insurances are all in order, check you have a clear statement of work, etc.

Not having an agency doesn't change any of the checks you should be doing on the contract. The main difference is usually in payment terms as agencies tend to act as an invoice factor and will pay you before they receive payment from the client. Expect (but it's by no means a dead cert) the client to want longer payment terms.

Have a look at Merkel for contract review.

[quackhandle]

What does this...


Have to do with this?


Other than nothing, or is there something you're not sharing.

Direct to the client contracts should be treated the same as all other contracts - you should do your due diligence about the client, get the contractual terms checked for IR35 and commercial clauses, make sure your insurances are all in order, check you have a clear statement of work, etc.

Not having an agency doesn't change any of the checks you should be doing on the contract. The main difference is usually in payment terms as agencies tend to act as an invoice factor and will pay you before they receive payment from the client. Expect (but it's by no means a dead cert) the client to want longer payment terms.

Have a look at Merkel for contract review.

I did a search as not heard of these but all I got was news of Angela's leaving dos.

Markel?

qh

[jamesbrown]

Yes, Markel. I frequently make the same mistake

There is no SDS for a small client or fully overseas supply chain, it's Chapter 8 ITEPA aka "old IR35" (pre-April 21, private sector).

[ladymuck]

I did a search as not heard of these but all I got was news of Angela's leaving dos.

Markel?

qh

Yes, it was a typo.

[northernladuk]

Be very careful about your own determination. Small companies are an IR35 nightmare. They are usually too fluid and have an all hands to the pump attitude due to the lack of people. You can very easily been seen as just another resource for them to use as they see fit. Very difficult to get a set SoW for a fixed piece of work and nothing more. Direction and Control is highly likely as they might want a bit of something else doing for another client or area of work because there just aren't enough people to give the ad hoc work to the permie instead. Many of them bring in a contractor because they are too small to employ a full time resource and be stuck with them so happy to pick a more expensive but flexible option.

Even if it starts off right you'll have to work hard to keep your IR35 status safe. Get the reviews but make sure you know IR35 well and know what you should and shouldn't do so you don't end up destroying your own status as time goes on.

[Guemlum]

Thank you to all who responded to my question.

Regards

Guemlum