Posts Tagged ‘ir35’

Contractors – The Top 5 things to look for in a contractor contract

September 7th, 2010 by Adam Tallamy Tags: , , , ,

The Top 5 things to look for in a contractor contract

Before signing any contract we would recommend that you read it thoroughly first and if necessary take proper advice from a solicitor or a relevant body such as the Professional Contractors Group with expertise in the relevant area. That said to get you started we have listed the top 5 things we believe that as a contractor you should be looking out for in a new contract. Some of these points are common sense and some refer to what makes a contract IR35 friendly or not.  

1. Right of substitution – does the contract give you the right to substitute someone else who is capabale of fulfilling the role in your place? If the answer is no then this would require further exploration.

2. Control - does the contract imply you are under the direct control of the client or does it suggest flexibility in your working arrangements which would indicate you are working as a consultant rather than a paid employee which is one indicator that you may fall under IR35. 

3. Hours you are working – are you being paid by the hour or is your working time stated in the contract as being a professional working day? The latter is more IR35 friendly.

4. The level of insurance you are required to have on acceptance of the contract. This can vary depending on the nature of your role and whilst the chances of you needing to claim may be small there have been some high profile instances where contractors have been sued and for the sake of a few hundred pounds to avoid potential bankruptcy is good value.

5. Opt-out or opt-in form – as a contractor you shuold have the option to opt-in or opt-out of EAA regulations. This is an in-depth subject and we would recommend you read up on this at contractor UK.

If you have found this article valuable then you may be interested to read some of our other job seeker help guides including some great video guides starring members of the Chase Zander team!

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