Contract under IR35?

[Bluebird]

Well its confusing, I don't think all the contractors have this luxury of refusing contractors just because they're inside IR35, if you dont have work for few months you won't be caring what's the nature of contract instead you'll just grab it. And I think thats true majority of contractors doing contracts via limited company which are inside IR35 but they're just doing it and taking risk of investigation which is pretty low in frequency.

So after researching on this issue and having comments from experts/normal contractors I've come to the conclusion that go for a limited company, get contract verified and insured i.e. having all the legal documents and just leave it . And if you are the rare one for investigation, face it show all the proofs, hope that the colleagues at client side might have gone by that time and hopefully you'll pass through the investigation.

Regards
Faraz

You're quite right Faraz, although there are a few steps/measures you can take that will help in the event of an investigation - they've all been mentioned here and in other IR35 threads...

[farazfastian]

Well its confusing, I don't think all the contractors have this luxury of refusing contractors just because they're inside IR35, if you dont have work for few months you won't be caring what's the nature of contract instead you'll just grab it. And I think thats true majority of contractors doing contracts via limited company which are inside IR35 but they're just doing it and taking risk of investigation which is pretty low in frequency.

So after researching on this issue and having comments from experts/normal contractors I've come to the conclusion that go for a limited company, get contract verified and insured i.e. having all the legal documents and just leave it . And if you are the rare one for investigation, face it show all the proofs, hope that the colleagues at client side might have gone by that time and hopefully you'll pass through the investigation.

Regards
Faraz

[malvolio]

On the whole "hours of work" thing, what's the general opinion on somewhere that defines core hours (e.g on site between 10am-4pm) but start and finish time is otherwise free. Would that be considered flexible enough to help avoid IR35 or not?

I should mention than in this particular case there is a requirement to work on site due to the security nature of the work.

If there is a business reason for you to be there, it is not Direction and Control and so is not an IR35 pointer in either direction. A support worker really has to be around during the normal hours of work of his client's permanent workers purely in order to do their job, so it's not a D&C issue.

[Dark Black]

On the whole "hours of work" thing, what's the general opinion on somewhere that defines core hours (e.g on site between 10am-4pm) but start and finish time is otherwise free. Would that be considered flexible enough to help avoid IR35 or not?

I should mention than in this particular case there is a requirement to work on site due to the security nature of the work.

[Sockpuppet]

The best way to get around IR35 is to refuse the contracts that are clearly IR35 ridden.

I went self employed / own ltd (you know what I mean) so that I could be my own boss and work when I wanted. So IR35 caught contracts are not my bag baby.

[ruth11]

Ok, I've found the relevant docs now and realise that the kind of contract I'm looking at is more likely to be outside IR35 than a support contract because it's project based. How do any contractors doing "3 month technical support contracts" ever get around IR35 - or do they just admit they're inside and pay more?

[thunderlizard]

If they are doing those hours because their customer is telling them to, they are probably inside IR35.
If they have decided on their own initiative that those are the best hours to do their work, then they might not be.

[ruth11]

I've just decided to go contracting for the first time and have been reading this forum for a couple of days to get as much info as possible, but this thread has me confused! Isn't the contract style described above how ALL contracts work? I'm sure that's how all contractors have been employed in each company I've worked in. In which case, how are ANY of them IR35 compliant?!

Edit: Hmm, just read the new post above. So, at my current work place (I'm permie right now), we have a few contractors who work a set 7.5 hours a day. Each has slightly different start and end times, but they do the same every day, Monday to Friday. Does that mean that they are INSIDE IR35? If they're not, how are they getting OUTSIDE?

[ASB]

So am i still fine with IR35 i.e. no threats of IR35 caught?

Unfortunately that utpoia doesn't exist.

Anything is at risk of challenge, and HMRC have launched some pretty daft challenges over the years.

Even if you have a robust contract and working practices once IR35 has reared it's head they rarely just go away saying "that's fine".

I agree with you all that its not the contract that decides IR35 status its the way you work etc.

Tell me one thing, If everything is ok like even some company has done a review of IR35 and declared it outside IR35 (based on contract) BUT my daily practice is to go reach the client office by 9:00 and work there till 5:30 following client's instructions and my contract duration is 6 months(likely to extend to 12 months). So am i still fine with IR35 i.e. no threats of IR35 caught?

Regards
Faraz

How do u say teh client dictates your working time? Is it explicitely mentioned in writing anywhere in the contract?

[Flubster]

I agree with you all that its not the contract that decides IR35 status its the way you work etc.

Tell me one thing, If everything is ok like even some company has done a review of IR35 and declared it outside IR35 (based on contract) BUT my daily practice is to go reach the client office by 9:00 and work there till 5:30 following client's instructions and my contract duration is 6 months(likely to extend to 12 months). So am i still fine with IR35 i.e. no threats of IR35 caught?

Regards
Faraz

No. If the client is dictating your hours you will more than likely fall in IR35...

[farazfastian]

I agree with you all that its not the contract that decides IR35 status its the way you work etc.

Tell me one thing, If everything is ok like even some company has done a review of IR35 and declared it outside IR35 (based on contract) BUT my daily practice is to go reach the client office by 9:00 and work there till 5:30 following client's instructions and my contract duration is 6 months(likely to extend to 12 months). So am i still fine with IR35 i.e. no threats of IR35 caught?

Regards
Faraz

[Bluebird]

It ain't what it says, it's the way that you do it - thats what makes it IR35.

[WotNxt]

With IR35 the contract is not the whole story.

Go to a company that offers IR35 protection insurance and get them to review it. They SHOULD ask you some questions about things like real working practices before making a decision either way. They may review for free on the basis of selling you a policy - but check the small print of any policy you might buy!!!!

JMTP (just my two-pennorth)

[cprs]

Hi, just curious. I've found that the contract my agency offered me is pretty common so there is a chance that someone already checked it for IR35.

Here are some contracts that look nearly the same as mine:
http://www.google.co.uk/search?q=CLI...%20CONTRACTORS

Maybe some tips before I pay 200 quid for checking it? (And yes, I know I'm dumb. Me speak no English and work for peanuts.)

Cheers.