Terms & Conditions as proof of contracting??

[DrX]

Hi,

I'm a newbie and would appreciate your advice. I've asked my agency to sign a contract for my locum work as a doctor after I've come to know the IR35 rules. I've locumed before without realising that such thing exists!
To cut short the agency said they can't sign a contract and that I can use their "terms and conditions" as proof if required by Inland Revenue .. pathetic !! We usually, as doctors, pop in to work with a confirmation letter saying for example hospital X likes to book you from -- to -- (on average a month or so) and for £--/hr .. that's it, no contracts or whatsoever.

The agency says they've never been asked such a request.. and just wondering whether I'm over cautious or am I asking my rights??

Thanks

[pmeswani]

Hi,

I'm a newbie and would appreciate your advice. I've asked my agency to sign a contract for my locum work as a doctor after I've come to know the IR35 rules. I've locumed before without realising that such thing exists!
To cut short the agency said they can't sign a contract and that I can use their "terms and conditions" as proof if required by Inland Revenue .. pathetic !! We usually, as doctors, pop in to work with a confirmation letter saying for example hospital X likes to book you from -- to -- (on average a month or so) and for £--/hr .. that's it, no contracts or whatsoever.

The agency says they've never been asked such a request.. and just wondering whether I'm over cautious or am I asking my rights??

Thanks

I don't think the agency is being unreasonable here... but that is my opinion. If you accept work from any agency, without a contract, you automatically have deemed to have accepted their terms and conditions. I would get their terms and conditions and get it checked for IR35.

[Sausage Surprise]

I know that IR35 is all down to contract wording and working practices but by the nature of the job how could a locum be a disguised employee?

Does the OP run his own Ltd and go down the dividend path or does he pay full PAYE - he doesn't say?

[pmeswani]

I know that IR35 is all down to contract wording and working practices but by the nature of the job how could a locum be a disguised employee?

Does the OP run his own Ltd and go down the dividend path or does he pay full PAYE - he doesn't say?

I have seen locum rates as high as 150 GBP an hour. That's right an hour! I would expect them to have their own limited company on that rate.

[DrX]

First thanks for your replies.

Yes I work via my own Ltd company. Most locums would prefer to work via Ltd or Umbrella companies for obvious reasons. My worries whether HMRC would consider me as described above "disguised" employee for an X NHS trust. Just to mention I finished my contract (temporary, PAYE) with hospital Y and then set up my own Ltd to start locum work with hospital X (some 150 miles form hospital Y town where I continue to live !), so basically I drive back home every weekend to see family. My confirmation letter states a start date, end date and hourly pay rate paid in gross to my Ltd company account. Would this be enough to keep HMRC away from me?

[pmeswani]

First thanks for your replies.

Yes I work via my own Ltd company. Most locums would prefer to work via Ltd or Umbrella companies for obvious reasons. My worries whether HMRC would consider me as described above "disguised" employee for an X NHS trust. Just to mention I finished my contract (temporary, PAYE) with hospital Y and then set up my own Ltd to start locum work with hospital X (some 150 miles form hospital Y town where I continue to live !), so basically I drive back home every weekend to see family. My confirmation letter states a start date, end date and hourly pay rate paid in gross to my Ltd company account. Would this be enough to keep HMRC away from me?

Personally speaking? I would get some form of contract or T's & C's from them and get it reviewed for safety. IR35 is, based on my understanding, based on the wording of your contract, working practices and in some instances based on whether you went from working perm for the hospital on Friday and then went contracting for the same hospital on Monday.

[TestMangler]

Again, like most problems, this is really simple to solve.

1. Ignore most of the advice you've already received.

2. Ask the hiring authority for a copy of their purchase order (made out to your company) rather than the letter of engagment. Any commercial purchase order will come with the terms and conditions of the purchase printed on it. These are the terms with which the supplier must comply.

As Ramsey would say, DONE !!