For this to be the case, the services entrusted to you must be truly outsourced and not just a service disguised as a consulting contract. If the helmsman has an idea that the agreement between the consultant and the hired person does not reflect a management service, it is possible that the hired person becomes responsible for IR35. There is a lot of confusion about counselling services when it comes to the declaration of job offers. In strict terms, consulting services should not be confused or merged with specifications (Declaration of Work, SOW). A true consulting agreement changes the identity of the end user. An article by Will Evans, Managing Partner at Livingstone, a global debt advisory and advisory SME. Evans focuses on the consulting sector and recently advised Catalyst Development in the UK on its merger with US-based Sionic Advisors. To do this in accordance, you need to completely renegotiate the terms with your client, as the agreement offered by a real consultant differs significantly from that of an ir35 external contractor. If you plan to become a consultant under a corporate structure, you need documents for the new entity. You also need an advisory contract that specifies as clearly as possible your relationship with your client. When a consultant works through an agency, it is particularly important that the agreement is in the right form, as temporary agency work tends to fall short of the rules. Reference was made to the fact that the contractors were considering joining forces to form a « consultation » in order to avoid detailed amendments to THE IR35.
From a compliance perspective, it`s okay to create a real board that you set up as a contractor. And while this means you`d retain the right to determine your own IR35 status (provided that this advice falls under HMRC`s criteria for a « small » company), there is a big difference between providing a service as a traditional provider and advice. Like other consulting agreements, a statement of work must reflect the reality of the mission. The creation of a consulting company for the sole purpose of avoiding a reform of the IR35 is marred by difficulties – from the point of view of the IR35, logistical and financial. HMRC decides whether ir35 applies or not. What matters is not the written agreement or what the parties have agreed, but rather the relevant facts about the contract. If companies want to continue using affordable advice without the IR35 risk, there are three ways to explore overall: we have made available to professionals a number of forms of agreements. Some of them provide for a single consultant, who works as an independent contractor, to personally perform contracts with the client, and some of them provide that the client enters into a contract with a consulting firm (a company) that commissions the professionals to provide the services on his behalf. The starting point is that the advisor must work under the terms of a formal service contract – a consulting contract of any kind. While the existence of such a document is not conclusive evidence of the status of the parties, such an agreement is concluded in a manner that tends to show the relationship as that of the client advisor and not of the worker and employer.
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