Multiple Extensions

[Scotchpie]

I'm in a contract that began last March and that was only for three months initially. However, as work loads keep increasing, I keep getting my contract extended, as do the other contractors. I've just been extended again (my third) until the end of March 2009 but to be honest, with the projects I'm working on, I think it will be extended yet again.

I'm starting to wonder if these extensions could place me under IR35. Can multiple extensions flag you up as being IR35? Meaning that my relationship with the client could be seen as being more like employer/employee rather than client/contractor.

If this is the case wouldn't it be better to negotiate an extended period which will then fall under one extension rather than several smaller extensions?

Also I was wondering if taking on several small, home-based, contracts that I can do over the weekends (rent-a-coder for example) would help prove my contractor status.

[BlasterBates]

I would have thought the short contracts would be a help rather than hindrance.

But I think the problem is simple, if you find yourself ticking the box about being the shareholder of a service company with mainly one customer, you're probably going to be asked for NI.

Somehow you need to be able to not have to tick that box and have a justfiable reason.

[VectraMan]

I'm sure for one of the losses the inspector cited the contractor being regularly extended every 6 months as a reason for it being more of an employer-employee relationship. In which case you're probably better off with lots of short extensions of different lengths, because then you can argue each was for a different package of work.

[BolshieBastard]

Let's be honest, hmrc will twist any assignment, contract, call it what you want to look inside ir35.

I dont think it matters how long your 'on site' (I've just been extended to June 09 which brings me up to just short of 3 years with the same client).

Just got to try and minimise your exposure to ir35 as much as possible and keep your fingers crossed.

[d000hg]

If you are taken on for different pieces of work of different lengths, not just extended by 3 months every 3 months, it looks more like they are using you as an external resource. Especially if you happen to be on the bench a week after finishing and they call and offer you some more work... can you arrange that kind of thing?

[norrahe]

If you are taken on for different pieces of work of different lengths, not just extended by 3 months every 3 months, it looks more like they are using you as an external resource. Especially if you happen to be on the bench a week after finishing and they call and offer you some more work... can you arrange that kind of thing?

WHS, if you can take a few weeks off before starting the next extension or get them to specify in the contract that its a different stream of work or project.

Inland revenue tend to target people who've been there longer than 2 years