First Contract – couple of questions about IR35 and opting-out.

[2uk]

FINALYYYYY !!!


I have been offered a 2 months contract as a Sys admin. Now since I am a complete newbie I am not sure if I should chase being outside IR35. A role as a System admin sounds a lot like an in-house person/position to me.

The agency said their contract is totally IR35 friendly. ( haven’t seen it yet ).

2 questions:

1. Would you recommend me to stay inside to avoid troubles from lacking experience in handling IR35?


2. The agency want me to sign their “Agency Regulations Opt-out” form. The form states that I opt-out. The agency told me I want to be opted-out because:

a. They (the agency) don’t have to be doing background checks on me.
b. Being opted-out flavors the IR35 compliance.

I know there is something they are not telling me - what is the gotcha of being opted –out ?



Phuuu.

[Gonzo]

I know there is something they are not telling me - what is the gotcha of being opted –out ?

1. If the client doesn't pay them, they don't have to pay you.
2. They can enforce a clause in the contract that prevents you from working directly with the client once your period through the agency ends.

Personally I wouldn't worry about either of these things. The PCG negotiated the opt out into the regulations so I think it is probably a good idea, even if I am not completely sure why. Agents will tell you that it is good for IR35 status but I think that is somewhere between dubious and b0ll0cks.

[Ardesco]

Secondly if you have already met the client (i.e. interview, gone to place of work to see what is going on) legally you cannot opt out. The agency should have asked you before introducing you.

FYI opted in or out makes virtually no difference as far as IR35 is concerned, is does make a difference as to how much work the agency has to do.

If you are opted in they have to check a couple of references and validate your CV and it also forces them to pay you in a set time period.