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Knowledge Transfer/Training contract extension..??

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    Knowledge Transfer/Training contract extension..??

    I've been on a contract with the same company for 13 months now (during which time it has been extended twice), to design/implement (as part of a team of consultants) a new network and associated systems..

    I have been operating through Giant's powerhouse product.

    The contract is due to end on 26th March (and I was planning to take some time off and travel a bit then set up a ltd co. due to the changes in regulations).

    Basically, they have one support guy onsite and they have just realised that this is simply not enough (something I have suggested on many an occasion!).

    They are now asking me to extend for another month to perform a knowledge transfer/handover to an outsourcing company who will be helping with support of the system. There will also be an element of assistance in the initial workload of the onsite support engineer in providing the AD/security support to his rollout of desktops.

    I have negotiated a significantly higher rate for this piece of work and will be asking for a new contract, rather than extension (due to the rate and also the new legislation).

    I am going to be setting up my ltd company in the coming week.

    My question is regarding the IR35 status of this contract.

    I have heard that it is bad to have words such as 'assist' in the job specification but the fact that the main purpose of the contract is to hand over to a long-term support team suggests to me that this should be a fairly 'safe' contract to take.

    I guess really I just don't want the first contract for my new co. to be a prime target for investigation...

    I will ensure that I have the relevant control/substitution clauses etc in place and am investigating MOO a little more closely.

    Any thoughts/advice welcomed!

    Thanks
    Richard
    Last edited by chez; 11 March 2007, 18:36.

    #2
    If it's a month/four weeks,then it's automatically outside of IR35 because it's too short.
    What happens in General, stays in General.
    You know what they say about assumptions!

    Comment


      #3
      Even though it is 'almost' an extension to existing?

      If so, great! Makes sense, I suppose.

      What if it was extended for a further month? At what length of time does a contract become long enough?

      Comment


        #4
        Originally posted by MarillionFan
        If it's a month/four weeks,then it's automatically outside of IR35 because it's too short.
        Don't think this is true. Been a while since I read the PCG IR35 Guide, but ISTR three days was about the minimum term they would consider for IR35.
        Cats are evil.

        Comment


          #5
          To be fair. If you did 12 1 month contracts. I doubt any of them would be under IR35.
          What happens in General, stays in General.
          You know what they say about assumptions!

          Comment


            #6
            Originally posted by MarillionFan
            To be fair. If you did 12 1 month contracts. I doubt any of them would be under IR35.
            Unless they were sequential at the same place

            The IR mentioned a month in their guidance, but stuffed if I can find it again. It was in the conext of "< 1 month unlikley to be caught".

            Comment


              #7
              Thats what I was thinking about. I do remember a <1 month guidance (at different places of course)
              What happens in General, stays in General.
              You know what they say about assumptions!

              Comment

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