Agency Contract
My agency is using terminology which I fear may adversely affect my IR35 Status
I have recently started a new contract with a new agency. One of the large well established agencies.
My contract looked OK for IR35 perspective, right of substitution, contract between the agency and my limited company and although it mentioned me by name it did specifically say non-exclusive.
However I became rather disturbed when I received the standard agency timesheet (a four part form). On the back of the form is a Terms of Business for the Introduction of Contractors.
There are two clauses which concern me.
"The Employment Business (the agency) is responsible for the payment of a Contractor's renumeration and shall deduct from and account for all applicable taxes (including without limitation any National Insurance contributions) required by law."
This is clearly untrue as under the terms of the contract between my company and the Agency my company are responsible for all NI and PAYE payments.
The second clause concerns control
"Contractors are engaged by the Employment Business under contracts for services. They are deemed to be under the direction and control of the Client from the time they report to take up duties and for the duration of the Assignment. The Client agrees to be responsible for all acts, errors or omissions of the Contractor whether wilful, negligent or otehrwise as though he was on the payroll of the Client....."
Again this is contrary to my contract which states that my company is responsible for any errors or omissions which shall be made good at no expense to the Client.
The third item was the remittance advice received from the agency. It did not specify my invoice number but was printed as if it were a payroll advice with zero in the tax and NI fields. And specified the amount and VAT from my invoice. However by using a Payroll system rather than an accounts payable system strikes me as being a strange way of dealing with a Business to Business relationship.
Under my engagement I have been brought in as an expert and am not under the control of the client. I supply my own equipment (laptop mobile phone etc) when on the client's premises. However I am concerned that the actions of the agency may prejudice any case I may have against IR35.
-- fionaharvie