IR35 help

[LisaContractorUmbrella]

Hi guys,

A little confused and a bit worried here. I understand what IR35 is but don't have much experience with it.

I started working for an agency a week ago but haven't signed anything yet. (Yes I know - stupid). But they are a large agency and pretty reputable, so I'm not too worried about not getting paid.

The agency guy said that most of his clients "opt out". Which I guess means opting outside of IR35. I said I'd opt in because that's what I've always done with my previous agency and got paid through an umbrella. The agency guy asked why I opted in and he said that 95% of his client opt out. So I opted out.

Anyways, he forwarded me onto Paystream (yes I know - are they that bad?) because I need to get paid weekly and Paystream said that the contract is opt IN and that they would recommend that instead anyway.

What is going on here? Just a bit of miscommunication between my agency and Paystream or is there a common dodgy theme here?

Thanks.

You cannot 'opt-out' of IR35. You can opt out of the The Conduct of Employment Agencies and Employment Businesses Regulations

[cojak]

Here's information from this very website.

And stuff from Personnel Today...

[Wanderer]

A long item, summed up as:

Overall, I find it difficult to see that there is any sound commercial reason why a contractor providing services through an agency would wish to opt out of the new regulations.

[Moscow Mule]

Here's information from this very website.

That's very restrained. Well done.

[cojak]

That's very restrained. Well done.

Ithangyew....

[northernladuk]

Ithangyew....

Grrrrrrrrrrrrrr

[Ardesco]

I prefer this link:

http://lmgtfy.com/?q=contractor+opt+in

[TheFaQQer]

The agency guy said that most of his clients "opt out". Which I guess means opting outside of IR35.

Yes - it's that easy to get out of IR35. You just opt out of it. If only that Dragonfly guy had thought of that, eh.

[Branded]

You cannot 'opt-out' of IR35. You can opt out of the The Conduct of Employment Agencies and Employment Businesses Regulations

Yeah, this is exactly what it is. Now I believe the reason is that it's better for the agency rather than myself.

If I opt OUT:

1. They can refuse to pay me if the client doesn't pay up.
2. I can't work for the client directly.

[TheFaQQer]

Yeah, this is exactly what it is. Now I believe the reason is that it's better for the agency rather than myself.

If I opt OUT:

1. They can refuse to pay me if the client doesn't pay up.
2. I can't work for the client directly.

No - you can work directly for the client, but the period that you are contractually restrained from working for them may be different from that dictated by the regulations.

However, in practice it's a moot point - most agencies will have a contract with the client that prevents them from taking you on direct anyway.