Is a Rolling Contract Inside or Outside IR35?

[Dynamic]

What is a monthly rolling contract? I only know that it is a contract with no end date.

How likely is it that HMRC argues that it's inside IR35? What would be the impact of rolling contracts on IR35? (I know working practices are the most important but that's not the question).

This site says having a rolling contract means you're inside IR35.

My current client offered me a rolling contract but I asked having an end date, without proper research I think.

The agent said, rolling contracts have no IR35 issue for you and we've never had any contractor having issue with HMRC.

Thanks,

[malvolio]

What is a monthly rolling contract? I only know that it is a contract with no end date.

How likely is it that HMRC argues that it's inside IR35? What would be the impact of rolling contracts on IR35? (I know working practices are the most important but that's not the question).

This site says having a rolling contract means you're inside IR35.

My current client offered me a rolling contract but I asked having an end date, without proper research I think.

The agent said, rolling contracts have no IR35 issue for you and we've never had any contractor having issue with HMRC.

Thanks,

Have a google for The Potted Guide to IR35 and read what it says. AS long as those criteria apply in reality and not just in the contract, that's all that matters. And don't believe everything you read (well, unless I wrote it, of course...)

[Wanderer]

The agent said, rolling contracts have no IR35 issue for you and we've never had any contractor having issue with HMRC.

Yeah they always say tulip like that though.

You are best to get your contract professionally reviewed if you are concerned about it and they will help you negotiate the right wording and working practices to keep you genuinely in business rather than as a disguised employee.

[kingcook]

Yeah they always say tulip like that though.

I remember recently, an agent told me it was just a matter of opting out of IR35. Simples!!

[Dynamic]

Thanks, so does any contractor here have a rolling contractor and is outside IR35?

[malvolio]

Thanks, so does any contractor here have a rolling contractor and is outside IR35?

Ermm.. You did read what I suggested you read?

Arguably a rolling contract has a degree of Mutuality above the minimum, since there may be a reasonable expectation of future work. Equally, it coud be argued that the contract will stop as soon as there is no more work to do and it is simply a management convenience not to have to keep re-issuing new contracts (or schedules to contracts).

A rolling contract threfore can have zero impact on its IR35 status. QED. IR35 is determined by MoD, RoS and D&C. Whic I'm sure you knew already, having studied your set homework.

Next time, do your own research.

[centurian]

This site says having a rolling contract means you're inside IR35.

Not exactly - it says "With regular work and “rolling Contracts” the Revenue will argue that you are an employee of the client".

HMRC arguing something doesn't always mean they are right, or they win. A rolling contract doesn't place you inside IR35 - it just gives HMRC a hook to grab hold of. As long as the rolling contract is there for convenience purposes - and not as MOO, it isn't a problem.

That said - if you get a fixed period - that's better it does make it a little harder for HMRC to dig their claws in. But on it's own - it won't be a deal breaker.

[JamJarST]

What do you mean by "rolling contract" ... I was/am on a rolling contract but each month, and now each quarter is a contract in its own right signed by both parties with a distinct start and duration.

[Wanderer]

What do you mean by "rolling contract" ... I was/am on a rolling contract but each month, and now each quarter is a contract in its own right signed by both parties with a distinct start and duration.

My understanding is that a "rolling contract" has no end date, only a notice period. The contract would be terminated by either party giving notice as defined in the contract.

It may be a good thing because you don't get the contract passed across the bean counters desk every few months for them to sign off so potentially a contractor could stay under the radar and work for the client for ages. IR35 may be a concern though...