first contract advice...

[northernladuk]

What you have said about IR35 is not wrong as such but is an incomplete picture. My contract had all the terms you mentioned but QDOS spotted that they had named me in a title heading which could be interpreted by HMRC as an employment style contract and would over rule the other items.

Indeed and also your contract can fail even if you have a RoS in. If it is worded such that the client and refuse the sub without reason it will fail as well. The devil really is in the details.

[7specialgems]

Hi.

I found the forum today, I've been reading lots of posts which have been really helpful but time I registered and asked my own q's

1)I have a contract for a set term with Parity to be on-site with a client. Aside from receiving contract & terms midday fri, starting monday, No real complaints so far. First week in, so haven't had much time to have any "hiccups". Does anyone have experience with Parity? things to look out for in their contract? I'm in the SE...

2)I haven't signed the contract yet, but understand in taking the work, I am legally bound. I am concerned about being tied to 60days with the clause "I am legally liable for any financial losses or finding another contractor to fill my position" It's snowing, if i cannot make it legitimately, is this going to go horribly wrong? What if the client and I agree a shorter period?

3)The client would only allow me to contract subject to a non disclosure on my first day, that's fine. but written in to it was also a 7 day termination on both sides. How does this fit in with the agencies 60 policy? I would be happy to take more work from Parity with the right client, so don't want to put myself on bad footing with them, but don't yet have the eye for contracts or the neg skills with the agy...

4)When the client signed my timesheet, they mentioned they pay the agency hourly & I should've checked o/t was ok.. My contract clearly states day rate & I explained I didn't work late to receive extra money. I'm concerned of any comeback or fiddling since the client has picked up on the difference in contracts. Anyone else experienced this? any advice or suggestions? I don't particuarly want to reneg, I am happy with my rate. Just maybe I've missed a legal angle or something I should be aware of.. (I haven't disclosed my rate to the client)

5)HMRC have initially turned down my VAT application for my LTD company. I am going to provide contract & other documentation requested. again does anyone have any advice here?

I would like to say from all the horror stories and moans i've read so far, I am otherwise happy and with only 1 week under my belt not being a permie, I have no complaints!! Wish i'd done it sooner.. just so much to be aware of (in the contract) to protect myself.

Thanks
Josh

I'm a Parity contractor. So to answer your points:

1) I found the Statement of Work to contradict points regarding Substitution in the boiler plate contract. My original SoW named me explicitly - I had this changed immediately. Eventually I conceded that my Ltd "recommended" me but ensured that I had RoS and that the Client could not unreasonably deny a sub that we both deemed qualified.

I had a clause about reviewing my work taken out as well. This was a pointer towards Control - I decide how I work, not them.

Parity also have clauses in their boilerplate for being transparent with payslips if you're working in the Public Sector. I wouldn't expect to see the payslips of a Lecturer at a University if I wanted to draw up a B2B to send employees there so taking the same line I successfully argued this.

2)I My boilerplate Parity contract contains a clause which makes it nobodys fault if it snows/force majeure - not Parity's and not my companies. You don't get paid for not working but you don't get penalised either.

3)I had a one day termination in my first 10 days and 10 days termination thereafter. I do not have the right to terminate, only the client does. Maybe this differs per client but my understanding is that I do not want to be able to terminate?

4) My big cock up with Parity was not to get a pro-rata overtime clause or hours per week detailed. I work 40 hours per week standard and any other hours I work are free. My client uses other agencies who define a 37.5 hour week and pro rata their consultant's daily rate. I will be getting that sorted if I am offered a renewal.

5) Find out what type of business your accountant put you down as. My main line is Software Consultancy and I was approved no problem.


Further to my cock up with Parity, my big cock up overall was not to get a QDos review of my terms before I signed it.

[7specialgems]

Let me understand... you've worked a week already but haven't signed the contract. And already the client has queried your timesheet. Is that correct?

There's a clause in the Parity contract that says that, if they haven't received a signed contract and you put a timesheet in, they interpret that as an acceptance of the terms.

[josh1e]

just wanted to say a quick thanks to everyone for taking the time to provide so much info.

@ 7specialgems, thank you for the specific info, very helpful.

I certainly have ALOT to learn!! (even the basics of wether VAT was included in the daily rate...) but, it's not a long contract and it's my first stepping stone in the right direction. I know more of what to look out for in future.

I'll update you all on how i get on shortly. alot to read over and take in

Thanks again for your help

[7specialgems]

(even the basics of wether VAT was included in the daily rate...)

Your daily rate is excluding VAT. B2B contracts don't include VAT. Remember this a contract between your Ltd and the Employment Business.

If your daily rate is £220p/d you'll be charging £220 + £44 VAT = £264pd

You won't charge this until you are VAT registered, though.

Parity won't let you use their self-billing system until you are, so you'll need to draw up your own template Invoice and send that in to Parity's e-mail address with your timesheet each month.

A word to the wise - Parity expect to see your timesheets for the whole month up to and including the last Friday of the month by the following Wednesday at mid-day in order to be paid the Thursday the week after that.

[Sausage Surprise]

Have you actually registered a company name and set up a bank account yet?

[Sausage Surprise]

@ northernlad,

No accountant yet. I only got first info about the role Mon, thurs interview, the offer fri am & contracts fri pm.. I thought it would be a week or so before start date but client in hurry. I had to put everything in place over the weekend and started monday. Now it's in place & first week went so well, thinking I like contracting and having more control... Would like to not be rushed & ensure for next contract I don't make same mistakes.

Nope, I agree, I don't know IR35 like an accountant, but I think I understand to some extent how they make decisions or the rational they use. Sure there is alot of loopholes and places to be caught out. Do you know if their is service to have agency contract's looked over for legal clauses / unreasonable clauses & ir35?

Have an appt with an accountant 1st feb. They fully booked before then. I had seen links on here for some, might contact 1-2 to see if they have closer appt's & rates..

It's been all rush rush from client, Not sure if ppl got wrong end of stick.. I'm not complaining about my contract or daily rate or lack of o/t pay. I am happy with rate and contract (as much as I understand it). I wondered if any other parity contractors had problems, re-neged certain parts of the contract, could tell me things to look out for, or had any other advice I would very likely have missed or not even thought about.

(for example I got caught out on opt out of agency code of conduct, didn't even know what it was before they ensured I had signed it! I thought it was 40hr opt out!! my mistake. Won't be so quick next time. it's all a learning curve)

thanks again,
josh

Give any recommended account on here a call - they speak to you straight away. I use NW - tell them I referred you

[MyUserName]

Give any recommended account on here a call - they speak to you straight away. I use NW - tell them I referred you

Do they know who 'Sausage Suprise' is?
I would love it if that was actually your real name!

[Sausage Surprise]

Do they know who 'Sausage Suprise' is?
I would love it if that was actually your real name!

That's Mr Surprise to you matey!

[MyUserName]

That's Mr Surprise to you matey!

The sausage is hardly a suprise if you call yourself Mister!