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Multiple renewals - IR35 - how to avoid the Split tribunal decision as in JLJ case

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    Multiple renewals - IR35 - how to avoid the Split tribunal decision as in JLJ case

    I've been in situations before where I have been renewed multiple times by the same client, to essentially continue doing similar type of work, though on different projects.

    I'm now at a new client and vying for a renewal as my first contract here ends soon. The template I used (PCG) was well formed for outside-IR35 and I put a specific objective in there for my first 6 months here.

    My 'specific objective' from the initial 6 month contract has been completed successfully, and so I'm thinking about the renewal contract having another specific objective for the next 6 months. For the renewal, I want to avoid the Split Tribunal problem.

    I want to avoid being seen as just 'rolling on' from one small task to another within the larger 6 month contract. This was the problem faced by JLJ Services, where he was deemed outside IR35 for the initial contract but within for all extensions. I would think that many of us have been in a similar situation, and hence exposed to IR35 on contract renewals.

    Am I taking a reasonable approach?

    #2
    Originally posted by ChimpMaster View Post
    Am I taking a reasonable approach?
    Yes. Having specific deliverables / projects helps to reduce the chance of you being "part of the furniture".
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      #3
      Just don't take your eye of the target. LJL got sloppy and fell in to a permie role by not pushing himself as a company and working hard to cover himself. He forgot to treat every extension as a new project and rightly got caught. I don't think we ought to take this as a risk to us all. Remember what we do, deliver specific pieces of work to a client as a specialist in your field. Keep doing this and you can be renewed until the end of time. Ok I ought to pad out the description to include the terms such as consultant, business, supplier etc but you get the idea.

      Just remember IR35 always, keep focussed in what you do and you will be fine.

      The only problem is when they are renewing you because you are a hidden permie to them. If this is the case then at some point you may have to throw the towel in. If they are treating you as inside then you are. You can still work hard to make your contract look like but if working conditions say otherwise you are walking a dangerous path. At this point you leave.

      That's how I see it.
      HTH
      'CUK forum personality of 2011 - Winner - Yes really!!!!

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