Contract Terms and Conditions are the most important initial factor in determining IR35 status. If you fail to address the contract and ensure that terms are considered ‘Outside IR35’ you could leave yourself open to an IR35 Investigation and possibly a large tax bill in years to come.
Before agreeing to a contract a professional IR35 assessment should be undertaken. If any terms need to be changed they should be amended before the contract is signed. It is very difficult to amend contract terms once agreed so make sure they are correct before signing. A badly drafted contract can make a genuinely self employed contractor inside IR35.
In this section we have provided detailed information on IR35 Contract terms, including;
If you are unable to find what you need or you would like to speak to a professional advisor about IR35 and going into business with your own Contractor Limited Company contact Commonwealth Contractors now!
To discuss your situation call now on 0330 390 9021 or Submit your Details and we will get right back to you!
Agency Terms and Conditions
More often than not a Contractor will secure a contract via a recruitment agent. If you’re in this situation the agency will probably want you to sign up to their standard terms and conditions. If you do this without assessing the contract (and making revisions where required) you could find yourself Inside IR35.
One of the problems with agency terms and conditions is that the agency will have a standard agreement between;
- The Agency and the Client
- The Agency and the Contractor
If, as a contractor you are going to make changes to your contract (Agency to Contractor) any changes really need to be replicated between agency and client. You may find this an uphill battle but a court may find contract terms and conditions artificial if they include specific clauses on one side of the agreement but not the other.
In order for a contract to be Outside IR35 it must be a ‘consultancy contract’, with the service provider (Contractor) retaining a large degree of control over what, where, when and how services are to be delivered.
Where an agency is involved the contract will be a sub contractor arrangement. If there are any problems the client will try to claim compensation from the agency and the agency will try to claim compensation from the contractor.
One of the ways an agency will try to reduce liability is by giving the client a large degree of control in the contract. This way if there are any problems the agency can say that the client had control over the Contractor and therefore it is unreasonable to try to claim compensation from the agency. It is therefore very important to make ‘back-to-back’ changes to any contract.
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To find out more about Commonwealth Contractors call now on 0330 390 9021 or Submit your Details and we will get right back to you!