Revenue sends contractor client questionnaires after IR35 accounts check

I've had a visit from the Inland Revenue. They checked my accounts (everything OK) and also took away 4 contracts from clients I have worked for in the last 2 years. They have now come back to me with the following:

"Consideration is being given to the contracts and information which you have supplied and I would now like to approach the clients to see how they viewed the working arrangements."

"In the circumstances, would you please arrange for the enclosed questionnaires to be completed."

They then enclosed 4 copies of a document to be completed by my clients -

I have written up the form as it appeared to originate from a document which had been photocopied a number of times.

Has anybody seen this form/completed it.

Confirmation of Arrangements Between Contractor and Client

1. This is to confirm that _________________ Limited, the contractor, is providing services to ________________, the client.

2. These services consist of __________________________________________________ (description of services).

3. They commenced on ________________ (date) and can be terminated by either party at any time/with _______________ days notice/are contracted to continue until at least _________________.

4. The services are to be provided by ___________________________________ [name of the actual individual/individuals who have to do the work.]

5. The contractor has the right/does not have the right to select and send a substitute to carry out the services specified in the contract in the place of [the named individual/individuals].

6. The contractor has the right/does not have the right to subcontract the services to another party.

7. If the contractor has the right to subcontract the services or send a substitute, the contractor remains/does not remain responsible for the work done by the substitute/subcontractor, and the substitute/subcontractor will be paid by the contractor/client.

8. If the contractor has the right to subcontract the services and/or send a substitute, the client agrees that he will accept that substitute or subcontractor if the latter has the skills to carry out the services specified in the contract.

9. The basis of payment for the contract is:

On a project basis for a fixed sum which has been agreed in advance

On a project basis and for a fixed sum, although adjustments to that fixed sum can be negotiated

On a time basis - hourly/weekly/monthly

Other ___________________________

10. The work is carried out:

Entirely on the client's site or at another place directed by the client, such as a customer or client

Partly on the client's site and partly at the contractor's office or home. If some work is carried out away from the client's site, state the nature of this work and its frequency.

Entirely, or almost entirely, at the contractor's home or office.

If the work is to be carried out on the client's site or at a place directed by the client the principal reason for this is:

Security?

The need for the work to be carried out on the client's equipment/systems?

The need to interrelate with others working on the same project?

The need for the client to oversee the work or services being provided?

Other?________________________________

11. The contractor does/does not work as part of a team which includes members of the client's staff.

12. The contractor:

Can choose which hours he or she works as long as he or she gets the job done within the agreed period;

Must conform to normal client working hours and patterns. Where this applies it is because:

It is necessary for security reasons or reasons of access to other personnel, or

It is necessary for the client to be able to exercise supervision, direction and control of the worker.

Can choose which hours he or she works as long as a minimum number of hours are worked each day/week/month. These arrangements are the same as/different to those which apply to members of the client's permanent staff.

13. The work is:

Subject to the client's day to day control as to how it is carried out;

Can be carried out as the contractor chooses but within the requirements of the project, including reaching necessary quality standards.

14. The work is carried out using:

Only the client's equipment

Only the contractor's equipment

Largely the client's equipment but with some provided by the contractor

Does not require equipment

15. The contractor has/does not have the right to provide services of a similar nature to other clients during the course of this contract.

16. The client will pay the contractor holiday pay/sick pay/medical insurance/none of these.

17. The contractor does/does not carry the risk that work which is not to specification is rectified at the contractor's own expense.

18. The contractor is/is not required to provide professional indemnity insurance cover.

We hereby confirm that the above summary reflects the true nature of the contractual relationship between the parties during the period

For and on behalf of the contractor:

Name ……………………………….

Telephone ………………………….

Signature …………………………..

Date …………………………………

For and on behalf of the client:

Name ……………………………….

Telephone ………………………….

Signature …………………………..

Date …………………………………

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Adrian Parry

Inland Revenue Form Adrian Parry 2/08 Inland Revenue form KevinM 2/08