Re: FN-FORUM: Ir35 legislation & opting out ?

date posted 30th October 2007 19:30

Dawn,

No, regrettably. That is not the case. The poster could have the finest
worded contract, written by the best lawyers on the subject. That would not
stop the tax man first estimating tax due, taking recovery proceedings, and
a day in tribunal after a long wait. A simple call to the Revenue, noting
date, time and person spoken to, will help far more than contracts here. If
the Revenue accept a contract as legitimate, of the enquirer acts upon
Revenue feedback, he will be okay. Most of all though, he will have peace of
mind.

Generally, regard everyone's circumstances as different for these type of
issues. Add an agency and client - you have three individual sets of
circumstances, applying to a particular work contract, so four situations to
be analysed before anyone can say an "opt out" is legitimate or wrong.

HTH...

Mike A.


From: "Dawn Thomson" [EMAIL REMOVED]
>
> Through a properly worded contract, you can ensure not violating IR35.
> For
> IR35 compliance, you merely need to:
> a) Pay your own expenses
> b) Define your own working hours; employees are typically, worded to work
> Mon-Fri 9-6, or whatever
> c) In the event of not being able to complete the contract, supply a
> substitute
> d) Pay your own tax and NI contributions
> e) Not entitled to sick pay, nor paid leave
> f) Try to not work for the same company for too long a period (typical 2
> year rule)
> etc.
>
> The opt-out agreement refers to the Conduct of Employment Agencies and
> Employment Businesses Regulations, 2003, in connection with the Employment
> Agencies Act 1973. Regulation 12 prohibits agencies from denying payment
> for such reasons as a non-signed timesheet, non-payment from the
> end-client
> etc. There are other protections provided to you as the "work-seeker"
> under
> these Regulations. Agencies claim that opting out ensures IR35
> compliance,
> but in actual fact, has no real effect on your IR35 status.
>
> You are under these Regulations allowed to opt-out provided you give
> notice
> before the introduction to, or supply of services to the hirer (client).
>
> Check you have a properly worded contract is the key.