Mr White’s company was engaged through an agency as a project manager for an engineering company. The objective was to complete a specific project but his contract made him sound like an employee of his client because his position was described as a role and no mention was made of the project objectives.
When Mr. White contacted us we quickly ascertained that the work was in fact project based. We then performed a contract review, which revealed that the contract resembled a contract of personal service and contained a poor description of the services to be performed by Mr White’s company. We advised Mr. White that if the contract were redrafted to properly reflect the actual relationship between the parties and the discrete nature of the services it would be possible for the arrangements to be evidenced as outside the scope of IR35.
Mr White instructed us to redraft his contract and negotiate the changes with both the agency. Once we had completed the actual redraft we undertook the task of justifying the amendments and explaining to the agency that they were not exposed to any additional commercial risk. After successful negotiation including discussions with the client Mr White is now safe in the knowledge that the contractual relationship between his company and the agency properly reflects the arrangements, and is not likely to be subject to IR35 liabilities. |