Reply to: Fixed Price Contract (FPC) offer

[GhostofTarbera]

So it still works via your own LTD company? and everything else for your LTD company remain the same ? (Corp tax, VAT, salary, dividends etc?)

Take that option then

Your end client has made a determination you are outside IR35?


Sent from my iPhone using Contractor UK Forum

[Paralytic]

You must be the only person here who needed to check their calendar to work that one out.

I've checked my calendar, and you are indeed correct.

[Old Greg]

I checked my calendar, and its definitely not post April 2021 today.

You must be the only person here who needed to check their calendar to work that one out.

[Geekman]

So it still works via your own LTD company? and everything else for your LTD company remain the same ? (Corp tax, VAT, salary, dividends etc?)

[David71]

I'm currently on a fixed price contract; no day rates involved just payment on delivery of milestones.

I worked out the amount for each milestone by working out (guessing!) how many days would be required for delivery x what sort of day rate the role would get. The tender document was helpful as it also contained rough estimates of each milestones start and delivery date.

System is working reasonably ok, but I have had to remind the chap I'm delivering too on a couple of occasions that 'I'm afraid I don't have a milestone for that....'; he's been ok and generally stopped asking for 'extras'.

This system gives a lot more freedom on working practices, as long as I'm available for required calls then how and when I deliver is up to me.

[Paralytic]

No, the bank will be responsible for making the determination post April.

I checked my calendar, and its definitely not post April 2021 today.

[jayn200]

By being so vague that it doesn't define the actual requirements/goal.

The OP says he doesn't know what he's doing from one week to the next, so any SoW is either going to be false, out of date or extremely vague, e.g. "to deliver IT services to meet our long-term strategic goals"

Yeah I guess, I have just never seen a SOW like that, although I guess if they are just using it as a tool to bypass ir35 it's possible.

[northernladuk]

How can a sow be inside?

WTF

[WTFH]

How can a sow be inside?

By being so vague that it doesn't define the actual requirements/goal.

The OP says he doesn't know what he's doing from one week to the next, so any SoW is either going to be false, out of date or extremely vague, e.g. "to deliver IT services to meet our long-term strategic goals"

[mudskipper]

Are you sure its not a FTC (Fixed Term Contract)? Sounds like a funny mix of 2 options.

If it is a FPC with an SOW and you'll be self-declaring outside, you'd better ensure your working practices are nailed down - no matter how generic the SOW wording is.

No, the bank will be responsible for making the determination post April.

[Paralytic]

Are you sure its not a FTC (Fixed Term Contract)? Sounds like a funny mix of 2 options.

If it is a FPC with an SOW and you'll be self-declaring outside, you'd better ensure your working practices are nailed down - no matter how generic the SOW wording is.

[Old Greg]

So you currently work like a permie BA would do but claim you are outside IR35 - that’s interesting for a start

Is the SOW option also inside IR35 ?


Sent from my iPhone using Contractor UK Forum

WTF

[jayn200]

So you currently work like a permie BA would do but claim you are outside IR35 - that’s interesting for a start

Is the SOW option also inside IR35 ?


Sent from my iPhone using Contractor UK Forum

How can a sow be inside?

[GhostofTarbera]

Hello all,

I contract for an investment bank in London. In the up coming IR35 blanket move - I have been offered 2 choices:

a) move to umbrella company
b) Fixed Price contract (FPC) - the bank will write a SoW (statement of work). this will be via an agency in between.

Though I understand FPC conceptually/in theory, don't have any practical experience. I am a business analyst. I have 2 main concerns:


1) Though there is a lot of work ahead, there is no modular work/project type work that can be scoped/estimated. (It's more like constantly streaming work). I myself don't know what will I be working in 2 weeks time. So not sure what the client will put in the SoW?

2) I myself can not just own a piece of work and deliver as my work is dependent on a variety of people around me to get it completed.

Hence worried how will it work in practice? or is it just a way to circumvent IR35? I don't even know how will I estimate and quote price?

Any advice/stories will be appreciated from the point of view of my concerns above.

Thanks,
Geekman

So you currently work like a permie BA would do but claim you are outside IR35 - that’s interesting for a start

Is the SOW option also inside IR35 ?


Sent from my iPhone using Contractor UK Forum

[hugebrain]

Hello all,

I contract for an investment bank in London. In the up coming IR35 blanket move - I have been offered 2 choices:

a) move to umbrella company
b) Fixed Price contract (FPC) - the bank will write a SoW (statement of work). this will be via an agency in between.

Just take the fixed price contract. It will put you far enough outside IR35 that the tax man won’t bother pursuing you (they like easy pickings).

Similarly, if you don’t quite deliver it won’t be in the bank’s interest to quibble.

P.S.