Direct But No Contract

[DCS]

Could do with a little advice.

Managed to get a gig direct with a client and no agency. However client won't sign up to a contract and insists on a letter of intent and a purchase order will suffice.

Two questions

1) Will this give rise to IR35 issues?
2) Has anyone else done this after all it is just purchasing a service?

Many thanks

DCS

[DaveB]

Could do with a little advice.

Managed to get a gig direct with a client and no agency. However client won't sign up to a contract and insists on a letter of intent and a purchase order will suffice.

Two questions

1) Will this give rise to IR35 issues?
2) Has anyone else done this after all it is just purchasing a service?

Many thanks

DCS

You're well outside IR35 with this by the sounds of it. The things I would worry about are:

1. Making sure payment terms are understood and workable for you. 90 Day Terms might be standard for the client but can you go three months without any revenue coming to the company?

2. Making sure the letter of intent is clear in what is expected as a deliverable, when and for how much.

Since everything is being done on a Busines to Business basis, assuming your name doesnt appear anywhere on the documentation, IR35 plays no part in the proceedings.

[DCS]

Cheers Dave B

Deliverables and t&Cs are well nailed now with penalty clauses for late payments etc.

Thanks for the advice, the IR35 issue was the main point of concern!


DCS