Reply to: Contract Review

[BolshieBastard]

Just wanted to jump in here and say thanks for this thread. I've been wondering this myself. I was thinking contracts would be pretty much standard these days, but I guess it never hurts to get the review done.

Yes, pretty standard tulipe if Im honest! B&C really beefed up my contracts where agents wouldnt entertain doing the same if you tried yourself (not that you'd have the knowledge to beef it up!)

[BolshieBastard]

Has anyone had their contract reviewed to see if it is outside of IR35 and if so did they find it particularly useful and would you recommend it?

I've had my last 3 contracts reviewed by Bauer & Cottrill. Well worth it for peace of mind but also to prove to that shower of tulipe at HMRC that you have taken due dilligence should you ever get the dreaded IR35 investigation.

[GeorgeB]

Just wanted to jump in here and say thanks for this thread. I've been wondering this myself. I was thinking contracts would be pretty much standard these days, but I guess it never hurts to get the review done.

[The Spartan]

As ma has said, Yes, the main reasons are 5% allowance, Flat rate vat saving, claiming expenses, lower costs.

I guess all that's left is to find a good accountant and I can make my preparations to go LTD

[Waldorf]

Even if the contract is within IR35, is it still more profitable to go Ltd than stay Umbrella?

As ma has said, Yes, the main reasons are 5% allowance, Flat rate vat saving, claiming expenses, lower costs.

[malvolio]

Even if the contract is within IR35, is it still more profitable to go Ltd than stay Umbrella?

Yes. Next.

[v8gaz]

Note that in the very very unlikely event that HMRC win against for IR35, and you HAVE had the contract reviewed, this can count as due dilligence and you are likely to be able to avoid additional fines, as you were acting in what you believed to be the correct manner after professional advice. Won't save you from paying the tax though

[The Spartan]

Even if the contract is within IR35, is it still more profitable to go Ltd than stay Umbrella?

[TheFaQQer]

I bet you're very experienced at spotting if any changes need to made, do you now do your own reviews?

I read the contract and see if there is anything that I can spot. I rarely do, though - there was one a few years back that was so blatant that anyone could have spotted it, as the agent was offering an IR35 unfriendly contract to try to force me to opt out of the agency regulations. I understand a fair bit about IR35, but I'm no expert, which is why I pay someone to check it for me.

There are some things that come back which I disagree with, but I'll normally ask the agent to change them (e.g. some reviews might suggest that the ability to give notice points to IR35 whilst others say that not being able to give notice point to being inside IR35 as it's MOO) if I feel that it's likely to happen.

At the end of the day, it's the working practices that count, which is easier to defend if you have a matching contract. That said, having a decent contract doesn't mean anything if the client doesn't operate that way. Contractor Weekly have been writing a fictional account of an IR35 investigation (google IR35 chronicles as I don't want to put a link on CUK) which makes interesting reading about this very point.

[The Spartan]

Every contract gets reviewed. I don't start work until the contract has been reviewed and approved.

Sometimes there are some changes that I have made, sometimes I use my judgement about whether they are inconsequential or not.

I bet you're very experienced at spotting if any changes need to made, do you now do your own reviews?

[TheFaQQer]

Has anyone had their contract reviewed to see if it is outside of IR35 and if so did they find it particularly useful and would you recommend it?

Every contract gets reviewed. I don't start work until the contract has been reviewed and approved.

Sometimes there are some changes that I have made, sometimes I use my judgement about whether they are inconsequential or not.

[The Spartan]

Thank you all, you've been really helpful the information you've provided me with will come in very handy I appreciate it

[Jeremiah@RHJAccountants]

Contract Review

When I read through my agency contract with Harvey Nash I found it to be quite wooley with not a lot of detail in I gather it's probably standard across other agencies aswell. I'm with an umbrella company at the moment but I'm planning on going limited in the new year.

If you are planning on going Limted i would reccommend you get your contract reviewed for IR35. It is always good to make sure that you are running your company correctly too.

We offer IR35 contract review here at Smith craven.

[Clare@InTouch]

When I read through my agency contract with Harvey Nash I found it to be quite wooley with not a lot of detail in I gather it's probably standard across other agencies aswell. I'm with an umbrella company at the moment but I'm planning on going limited in the new year.

Agencies usually have different contracts for umbrella and limited, ask HN for a copy of the contract they would issue should you be limited and get that one reviewed.

You're right though, most are pretty standard.

[The Spartan]

When I read through my agency contract with Harvey Nash I found it to be quite wooley with not a lot of detail in I gather it's probably standard across other agencies aswell. I'm with an umbrella company at the moment but I'm planning on going limited in the new year.