Why a legal contract?

[LisaContractorUmbrella]

My question was more from the point of tax-man coming knocking. When he says he wants to root through contracts, if a freelance developer turns round and says, "root through what?????" he say "your contracts" and freelancer says, in a tree hugging, all is cool in the world kinda way, "naaaaah maaaannnnnnn. I don't do contracts bro... Word is bond"

What's the impact? What they gonna step up to now?

They will probably wonder what you've been smoking and then look at your invoices, note down who your clients are and go and speak to them

[BolshieBastard]

Why should a freelance developer need a contract? If I have a service to offer a company, and that service is knocking out code, why should it be any different to if the service I was offering was washing cars or mowing lawns?

I've never had to sign a time-sheet from my window cleaner? When my boiler pops and a plumber turns up to remedy the problem, albeit temporarily and costly, I've never had to sit and negotiate terms and wait for his legal department to ensure the contract ensures he won't be in some horrible tax position......

Why do I need a signed legal contract for one and not the other?

How does the taxman decide which Ltd companies to pull? What is going to highlight my company name in bright pink as a prime IR35 candidate???????

Say what!?

So, you think your window cleaner or car washer is taking on the same responsibility as you?

Your analogies are wrong, you should be asking do your client's window cleaners have a contract with your client, does whichever vehicle supplier have a contract with your client for services provided?

You'll find the answer is yes in both cases. They may not be paper contracts but, they still be there just in case the window cleaners say 'We've cleaned every window in the building for 3 months, now pay up' when they have been nowhere near the place.

Or, the company wanted 20 diesel Sprinter vans but the vehicle provider sent 30 petrol Vauxhall Insignia and says to the company, we delivered, pay up.

You really are a stupid sockie if you cannot see why contracts are needed.

As for what identifies your company to hmrc for an investigation, there are a number of factors. These include random selection to geographic area, returns filed with hmrc that may flag their interest etc.

[OnceStonedRose]

They will probably wonder what you've been smoking and then look at your invoices, note down who your clients are and go and speak to them

And what if they speak to my clients? There is no contract? They simply state the facts that I did some work they paid some money? What does this prove or disprove?

The fact is I am not working for a company as an employee am I? No-one is paying PAYE & NI for me; I receive no cover for illness/holidays; I stand to lose if company goes bust without paying me; I have to repair code I have put in place if it is dodgy prior to sign off; I have no recourse for redundancy; Client is under no obligation to me in any way other than paying for what I do.

Just because I might be a chancer and shake hands on what I'll do for how much, why would that put my situation on red alert for Her Majesty's crew?

If I want to operate my company on a trust basis, regardless of how foolish that might be in this day and age, I should not be looked upon as unable to prove I am not an employee, I would have thought quite the opposite?

[OnceStonedRose]

Say what!?

So, you think your window cleaner or car washer is taking on the same responsibility as you?

So explain the difference wise one?

[BolshieBastard]

And what if they speak to my clients? There is no contract? They simply state the facts that I did some work they paid some money? What does this prove or disprove?

The fact is I am not working for a company as an employee am I? No-one is paying PAYE & NI for me; I receive no cover for illness/holidays; I stand to lose if company goes bust without paying me; I have to repair code I have put in place if it is dodgy prior to sign off; I have no recourse for redundancy; Client is under no obligation to me in any way other than paying for what I do.

Just because I might be a chancer and shake hands on what I'll do for how much, why would that put my situation on red alert for Her Majesty's crew?

If I want to operate my company on a trust basis, regardless of how foolish that might be in this day and age, I should not be looked upon as unable to prove I am not an employee, I would have thought quite the opposite?

If you want to work without a contract, you only have to convince your client to comply. So why are you wasting your time debating it on a forum and not getting out there and getting clients to 'trust' you?

Oh, and IR35 isnt just about a contract. Its also about the reality of the working relationship and situation.

[BolshieBastard]

So explain the difference wise one?

If you read the full reply, you'd have your explanation.

[OnceStonedRose]

If you want to work without a contract, you only have to convince your client to comply. So why are you wasting your time debating it on a forum and not getting out there and getting clients to 'trust' you?

Oh, and IR35 isnt just about a contract. Its also about the reality of the working relationship and situation.

If you want to work without a contract, you only have to convince your client to comply. So why are you wasting your time debating it on a forum and not getting out there and getting clients to 'trust' you?

Oh, and IR35 isnt just about a contract. Its also about the reality of the working relationship and situation.

Oh sorry.... Must remember that forums are simply for logging on and calling new folks "sockie" rather than proper questions/ideas/debates. Sorry Bolshie.

I'll post about something relevant next time, promise........

[BolshieBastard]

Oh sorry.... Must remember that forums are simply for logging on and calling new folks "sockie" rather than proper questions/ideas/debates. Sorry Bolshie.

I'll post about something relevant next time, promise........

That would be a first for you then

[OnceStonedRose]

Oh dear, you'll be calling me fatty or four eyes next?

[kingcook]

So explain the difference wise one?