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Help: IR35- Is my contract Inside or Out?

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    Help: IR35- Is my contract Inside or Out?

    Hey All
    Thinking about going LTD after 4 years with brolly for the same client, just wanted to know best way on finding out whether my agency contract is outside of IR35?

    Any idea on who I can approach to get this confirmation? as I have contacted my agency on this matter, however, they are being very lazy and have not come back to me with an answer on whether my contract is in or outside of IR35... dont mind paying someone ie law firm, specialist etc a fee to get this confirmation, but it needs to stack-up if I have any subsequent HMRC review on my contract (that is, if I do decide to go LTD if my contract is indeed outside IR35)

    Cheers

    #2
    Pay Bauer & Cottrell to review it for you.
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
    - Voltaire/Benjamin Franklin/Anne Frank...

    Comment


      #3
      Originally posted by Chico_sm View Post
      Hey All
      Thinking about going LTD after 4 years with brolly for the same client, just wanted to know best way on finding out whether my agency contract is outside of IR35?

      Any idea on who I can approach to get this confirmation? as I have contacted my agency on this matter, however, they are being very lazy and have not come back to me with an answer on whether my contract is in or outside of IR35... dont mind paying someone ie law firm, specialist etc a fee to get this confirmation, but it needs to stack-up if I have any subsequent HMRC review on my contract (that is, if I do decide to go LTD if my contract is indeed outside IR35)

      Cheers
      the agency aren't any use, some will claim to have an IR35 friendly contract, even though it may not be.

      They also probably won't want to commit to giving you a definitive "yes it's compliant" answer.

      get it reviewed by B+C as suggested

      Comment


        #4
        An Agent will never tell you outright that their contract is IR35 friendly as if it turns out not to be then you would have a reasonable case to sue them.

        Get professional opinion as to the IR35 compliance of a contract and consider IR35 insurance.

        Comment


          #5
          Not just that, I don't think most agencies even know what IR35 is.

          After all, they don't understand the Agency Regs or debt transfer rules. So how would they grasp such a woolly concept as IR35?

          Comment


            #6
            IR35 - inside or out

            The determination of whether the contract is "caught or not" is subjective.
            It is open to interpretation of legislation case law and precedent.
            The opinion of Bauer & Cottrell or Qdos would be of greater value than most but in the final analysis, the liability is with the company director.

            Comment


              #7
              HMRC have a set of questions/tests for the contract itself The inside or outside is basically employed or selfemployed.

              This all depends on the terms, conditions and facts of your contact. HMRC state “If you are in business on your own account and bear responsibility for the success/failure of that business…” you would usually be classed as self employed as it is you taking the risk.


              see http://www.hmrc.gov.uk/leaflets/es-fs1.pdf

              Comment


                #8
                Following the Dragonfly case any IR35 assesment will have to do more than just review the contract; it must be established that the contract will be a true and accurate reflection of your working practises. It won't help to have the contract rewritten to include a ROS if this would not be permitted in practise or if the ROS would be fettered in practise.
                Last edited by LisaContractorUmbrella; 17 February 2009, 09:26.
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                Comment


                  #9
                  Originally posted by LisaContractorUmbrella View Post
                  Following the Dragonfly case any IR35 assesment will have to do more than just review the contract; it must be established that the contract will be a true and accurate reflection of your working practises. It won't help to have the contract rewritten to include a ROS if this would not be permitted in practise or if the ROS would be fettered in practise.
                  practices

                  practice

                  practice

                  Sorry, one of my biggest bugbears is the mispelling of practice. Especially when it is mispelt more than once.
                  If your company is the best place to work in, for a mere £500 p/d, you can advertise here.

                  Comment


                    #10
                    Originally posted by pmeswani View Post
                    practices

                    practice

                    practice

                    Sorry, one of my biggest bugbears is the mispelling of practice. Especially when it is mispelt more than once.
                    The verb has an "s", the noun has a "c". It's not hard.

                    a practice/to practise ... practised
                    a licence/to license ... licensed
                    a defence ... defensive ?

                    Comment

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