Length of contract and IR35

**Craig at Nixon Williams** · 12 September 2013, 08:13

In theory they could go to town on every one of them, in reality this may not be the case due to the amount of resource that HMRC have available to throw it but it is certainly possible.

Craig

**bobspud** · 12 September 2013, 08:14

Originally posted by zoco View Post

Ok, I know that length of contract has no bearing on IR35 status.

What I'm wondering is whether having a lot of short contracts can help defend you from investigation. My reasoning is this - presumably every contract needs to be considered as an individual case which needs HMRC resources being thrown at it. Now, if I've had 10 contracts in the last 3 years, are they really going to go to town on each and every one of them? Whereas somebody who has had just 1 gig in the last 3 years will look like the proverbial low hanging fruit from an HMRC perspective.

The stakes are higher if you only have a single contract because if you did three months then left your risk if you were found inside will be bounded. Where as if you were to spend 3 years in the same place then you are going to be in ten times the trouble...

**malvolio** · 12 September 2013, 08:18

Originally posted by bobspud View Post

The stakes are higher if you only have a single contract because if you did three months then left your risk if you were found inside will be bounded. Where as if you were to spend 3 years in the same place then you are going to be in ten times the trouble...

Erm, that's 12 times the trouble...

Also an early win was with someone who had been there 12 years, so duration has no bearing.

But why bugger around with your business model because of IR35? If your working practice are sound, it won't apply. If you find someone willing to pay you for 10 years with no further effort, why would you turn them away?

IR35 is a concern but a manageable one; it is also not the most important or even relevant element of the job.

**zoco** · 12 September 2013, 08:37

Originally posted by malvolio View Post

Erm, that's 12 times the trouble...

Also an early win was with someone who had been there 12 years, so duration has no bearing.

But why bugger around with your business model because of IR35? If your working practice are sound, it won't apply. If you find someone willing to pay you for 10 years with no further effort, why would you turn them away?

IR35 is a concern but a manageable one; it is also not the most important or even relevant element of the job.

Yes, but you find yourself in a role where the client tries to defines your working practices. Sometimes you have no idea what a contract is going to be like until you've started. What do you do, walk away? Refuse to comply (and risk being terminated)?

**kingcook** · 12 September 2013, 08:45

Originally posted by zoco View Post

Yes, but you find yourself in a role where the client tries to defines your working practices. Sometimes you have no idea what a contract is going to be like until you've started. What do you do, walk away? Refuse to comply (and risk being terminated)?

Do you not speak to the client about the project(s) at interview/sales call stage?

**northernladuk** · 12 September 2013, 08:57

Lot's of threads discussing this.

https://www.google.co.uk/search?q=le...hrome&ie=UTF-8

**NorthWestPerm2Contr** · 12 September 2013, 11:07

Originally posted by northernladuk View Post

Lot's of threads discussing this.

https://www.google.co.uk/search?q=le... <br /> <br />

Are you sure you are cut out for contracting?

FTFY

**northernladuk** · 12 September 2013, 11:09

Originally posted by NorthWestPerm2Contr View Post

FTFY

This is Zoco/Pacharan we are talking about. We are all well aware he isn't.

**malvolio** · 12 September 2013, 11:15

Originally posted by zoco View Post

Yes, but you find yourself in a role where the client tries to defines your working practices. Sometimes you have no idea what a contract is going to be like until you've started. What do you do, walk away? Refuse to comply (and risk being terminated)?

You're the supplier, you provide the service. A basic tenet of contracting is to ensure you know precisely what the scope of that supply is, since that is all they are paying you for: you don't do things outside that scope and you don't do things that you aren't being paid for. You can change it or extend it by mutual agreement of course, but if your concern is IR35 the first step is to ensure the scope is described and signed off.

You get asked to do things because you do things without complaint so the client has no idea of what you are there to do. That's where you're going wrong. And if it means you lose the gig, that would be I'm afraid a self-inflicted wound.

Length of contract and IR35