It has taken a long time and a lot of effort to put together all those victories but now much of this great work has been undone and IT Contractors may all suffer for it. They concluded that the Special Commissioner was right when he ruled that Jon Bessell was a de facto employee of the AA, despite his contract and his limited company — and that he was caught by IR There was a right of substitution in his contract but the AA said that they would not have been happy if one had just turned up without them vetting the substitute whether they had been sent by Dragonfly or by DPP his agency, through whom he had been working at the AA for 3 years.
The legal team for Dragonfly said that the Special Commissioner wrongly ruled that the right of substitution in the contract was not inconsistent with an employment status, that the intentions of the parties were irrelevant as regards employment status, that there were gaps in the contract as regards control, that he wrongly saw only two statuses, i. Bessell only. When you should put a contract in place It is essential that you consider the terms of your contract before you start working on a project or assignment and ensure it accurately mirrors your working practices throughout your engagement with a client.
Undertaking additional work for your client If you carry out any additional work for the client that is not within the remit of your original contract, this could affect your IR35 status because: Your contract no longer reflects your working practices; and You are not in complete control over the work you undertake, as it appears your client controls this as they pay for your time, they can ask you to do whatever they like. Get in touch Please select your type of enquiry: New Enquiry.
Existing Customer. Where did you hear about us? I found you via a search engine I found you on social media My friend or colleague gave me your details My recruitment agency gave me your details I received an email from Brookson I used to be a Brookson customer. IR35 danger: when your contract is different from the agency-client contract HMRC always obtains the agency-client contract and compares it with the contractor contract.
They rarely agree, and this spells trouble. PCG points out that this is not a recipe for a fair hearing. Employment rights claims more limited under James v Greenwich decision A decision by the Court of Appeal has limited the ability of contractors to claim employment rights.
There is an essential distinction to be made between a contract for services and a contract of service, the latter being an employment contract to which IR35 would apply. Three key points to look at to determine which type of contract you have are:.
The best way to demonstrate this is a reasonably unfettered right for your company to send a substitute. Your limited company should have the absolute and unfettered right of control over how the work is carried out. The methods of working should be your own and not stipulated by your customer. The alternative scenario would put you in IR35 catchment territory.
In your contract there must not be an obligation for you as the contractor to accept work and for your client to provide you with work.
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