Originally posted by The Wikir Man
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Substitution advice
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Originally posted by Sally BFCA View PostIf you're referring to the VAT flat rate scheme, good point. The ceiling limit is £150,000 per annum.If you have to add a , it isn't funny. HTH. LOL.Comment
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Originally posted by Sally BFCA View PostIf you're referring to the VAT flat rate scheme, good point. The ceiling limit is £150,000 per annum.Comment
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Originally posted by ChimpMaster View PostWhat happens if you're on the fixed rate but end up billing > £150k for the year?If you have to add a , it isn't funny. HTH. LOL.Comment
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Originally posted by The Wikir Man View PostYou come out of FRS and have to calculate your input and output VAT as normal.
As ChimpMaster correctly pointed out in another thread once you are on the flat rate scheme, you can remain on it until your turnover reaches £225,000.
The £150,000 (estimated) is turnover to apply for the flat rate scheme.Comment
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Wow! Many thanks for all the responses!
To clear up some of the queries :
- I am not registered for Vat, nad even if I went back to work elsewhere would not go above the FRS threshold.
- I have an unfettered right to substitute myself with another person of similar skills. I would be willing to stay in the position gratis for a week or two whilst they got up to speed.
- Whilst I have not seen the full contract between the client and the agency, I have seen the extension approval which states "An individual to supply IT services" - my name is not mentioned.
- I understand what people mean regarding the client not co-operating, but I cannot break my business to business agreement, and neither can they. To give a background, I tried to leave within the 3rd month of my initial contract and was told by the client "I will enforce it" - the agency then threatened to sue me. Long story, but I ended up invoking my right of substitution at that time and even went as far as interviewing a substitute, who I put forward to the agency. In the end I stayed in the contract, but the right has already been proven.
My question really, is "would I have a right to sue for breach of contract if the agency or client refused to allow a substitute"?Comment
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Originally posted by sheik yerbouti View Post- I understand what people mean regarding the client not co-operating, but I cannot break my business to business agreement, and neither can they. To give a background, I tried to leave within the 3rd month of my initial contract and was told by the client "I will enforce it" - the agency then threatened to sue me. Long story, but I ended up invoking my right of substitution at that time and even went as far as interviewing a substitute, who I put forward to the agency. In the end I stayed in the contract, but the right has already been proven.
My question really, is "would I have a right to sue for breach of contract if the agency or client refused to allow a substitute"?
How exactly did you try to leave? if there is "no notice period" on your side, that is why the client "threatened" you. IMHO this surprises me, what's the point really, who wants an unhappy worker on site.
As for them, I am positive that there is a clause in your contract that says they can give you X weeks notice to leave, and they won't have to give a reason.
And because of this, they can get round your "right to substitution" clause.
So again, IMHO I think in most cases, a right of substitution clause is meaningless in a contract.Last edited by jmo21; 17 April 2010, 12:39.Comment
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All this makes assumptions based upon your contract - which obviously we haven't seen.
Originally posted by sheik yerbouti View Postbut I cannot break my business to business agreement, and neither can they.
So essentially they can say - "here's x days notice and we have nothing for you to do between now and then, so basically foxtrot oscar and don't even think about trying to invoice for it" - all perfectly valid within the contract (assuming your contract is similar to 95%+ of contractors).
Originally posted by sheik yerbouti View PostMy question really, is "would I have a right to sue for breach of contract if the agency or client refused to allow a substitute"?
However as mentioned above, all they need to is say "we accept your substitute, however we have no work for them to do, goodbye".
Personally, I would say that if you do think about suing them, make sure you buy a lottery ticket as well - as least you'll have a chance of something working out.Comment
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Originally posted by sheik yerbouti View Post- I am not registered for Vat, nad even if I went back to work elsewhere would not go above the FRS threshold.
Originally posted by sheik yerbouti View Post- I understand what people mean regarding the client not co-operating, but I cannot break my business to business agreement, and neither can they. To give a background, I tried to leave within the 3rd month of my initial contract and was told by the client "I will enforce it" - the agency then threatened to sue me.
Originally posted by sheik yerbouti View PostLong story, but I ended up invoking my right of substitution at that time and even went as far as interviewing a substitute, who I put forward to the agency. In the end I stayed in the contract, but the right has already been proven.
Originally posted by sheik yerbouti View PostMy question really, is "would I have a right to sue for breach of contract if the agency or client refused to allow a substitute"?
If they don't breach the contract, then you can't sue for breach of contract. Before threatening any legal action, make sure you are certain about whether the contract has been breached, and what your best line of compensation is.
Additionally, as I said in the second post, if you attempt to make a substitution, and the client refuses, this would also help point to you being inside IR35. If HMRC come calling and that turns out to be the crucial piece of evidence against you, I hope that the compensation you get from suing makes it worthwhile.If you have to add a , it isn't funny. HTH. LOL.Comment
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Originally posted by The Wikir Man View PostAdditionally, as I said in the second post, if you attempt to make a substitution, and the client refuses, this would also help point to you being inside IR35.
You can always argue an unused ROS clause as being perfectly executable. A rejected ROS leaves you "holed beneath the waterline".Comment
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