IR35 friendlieness at renewal

[Hicks]

I am due to strat my first contract next week.

I received the contract yesterday and based on research here and other sites, believe the contract is not IR35 'friendly'.

However, a friend who is a contractor, has suggested to go with the contract as it is and to amend it at renewal which is quite feasible as it is a short (2 months) rolling contract to an IR35 friendly one.

I just wanted to get a view from anyone who may be familiar with this to see if it is feasible or viable.

Obviously, this is based on the assumption that my working practices will be IR35 'friendly' throughout.

TIA

[oracleslave]

Am no expert but my thoughts are as follows:

This doesn't seem like a good idea to me. In all likelihood if there is a renewal you will probably just get a 1 pager detailing the extension with something in there stating that all the terms of the original contract stand. Then what you going to do? Rather get it sorted now is my advice as the longer this goes on the more you could get hit for in the long run, but maybe see what some of the experts say.

[shelby68]

Am no expert but my thoughts are as follows:

This doesn't seem like a good idea to me. In all likelihood if there is a renewal you will probably just get a 1 pager detailing the extension with something in there stating that all the terms of the original contract stand. Then what you going to do? Rather get it sorted now is my advice as the longer this goes on the more you could get hit for in the long run, but maybe see what some of the experts say.

I'd echo that, I tried to get a change made to an extention and the agency were not very happy about it on the basis that the original contract was fine, if I was not happy I should have changed it then.

[Hicks]

Unfortunately, I do not have much time as I will be away for the next few days and start the day after I return next week.

Shelby, were you eventually successful in getting your contract amended at renewal?

[Ardesco]

I would get it sorted from the outset.

From the point of the HMRC what is more likely to flag up as a good place to start an investigation?

A contractor who has always been outside IR35?

Or a contractor who was IR35 caught and then decided to stop paying it at renewal even though he is working at the same place and doing the same job?

I know who I would go after......

[Sockpuppet]

Unfortunately, I do not have much time as I will be away for the next few days and start the day after I return next week.

Don't let pimps play on this.

I've asked for an extension (the client didn't even know my contract as expiring).

Asked for a 10% rate rise (well 20% expecting to get 10%).

They are stalling hoping that I will sign and not get the contract checked due to the rush nature of it. It'll be a ******* shock when I don't show for work when the contract isn't signed then.

[Turion]

If you are concerned about IR35 you need to get the contract reviewed for by an expert before doing anythingelse. What you 'think' is not good enough. Personally for a 2 month contract I'd just take it as is. Do you want the work or not?

[TheFaQQer]

I would get it sorted from the outset.

From the point of the HMRC what is more likely to flag up as a good place to start an investigation?

A contractor who has always been outside IR35?

Or a contractor who was IR35 caught and then decided to stop paying it at renewal even though he is working at the same place and doing the same job?

I know who I would go after......

WHS - remember that the contract is only part of the story, and working practices are key as well. Having an IR35 friendly contract, but IR35 unfriendly working practices will still mean you are in trouble if you are investigated.

Not that Hector applies logic anywhere, but I know who I'd target too.

[SueEllen]

If you are concerned about IR35 you need to get the contract reviewed for by an expert before doing anythingelse. What you 'think' is not good enough. Personally for a 2 month contract I'd just take it as is. Do you want the work or not?

The contract is a rolling one which means there is a high probability of it being renewed. I wouldn't take it if it fell within IR35.

[dx4100]

The contract is a rolling one which means there is a high probability of it being renewed. I wouldn't take it if it fell within IR35.

Considering it is his first contract I think getting that first contract under your belt and on your CV is more important than milking the contract for the extra money. I presume even if it is caught by IR35 it is still a better deal then your perm setup.