New contract templates – IR35 friendly and IR35 caught
- 30 May 2018
Experienced contractors will understand the value of an ‘IR35 friendly’ contract. This means the contract clearly sets out the business-to-business nature of the arrangement and will include specific clauses that demonstrate IR35 compliance, such as a good strong substitution clause.
There are two contract templates, exclusively available to members. The first is IR35 friendly; the second is not. If you are ever presented with a contract which looks similar to the ‘inside IR35’ example here, you should think carefully before signing it – unless of course you are content to voluntarily operate inside IR35.
The contracts have been drawn up by leading experts at Travers Smith solicitors and IPSE is delighted to recommend them to members. It is worth noting though that a contract alone will not be enough to determine IR35 status. It will be just as relevant to look at what happens in practice and a court or tribunal may even ignore the contract if it does not reflect the reality of the relationship. Having said that, IPSE would strongly recommend getting a good contract in place as a starting point.
IPSE members are welcome to use these contracts for their own engagements. You can find them in our resources section: https://www.ipse.co.uk/ipse-resources/resources.html