WIRE OPENAn archive editionSEARCHARCHIVERSS
EST. 2000
UKTECH
THE IT-CONTRACTING & TAX RECORD
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Vague terms of reference could hand the client control, contractor fears

Recently the end-client has tried to introduce a Terms of Reference (ToR). Now the idea of a ToR could be handy in an IR35 dispute as it can be used to clarify the contractor / end-client relationship. However this ToR is just too vague and is I think not a true view of the actual relationship.

When I renewed with the client it was under the impression I would be working on a certain project that was due to start when the current project was finished (this new project is now several months along). Sort of like agreeing to build Bungalow B when finished development on House A.

However the ToR indicates that I would be 'expected' and 'required' to support work on other [unnamed] projects as directed. Now this is not what I agreed to and not what is happening (not if the deadline of the new project is to be met).

The ToR proposed was sent out as a template that was trying to cover all the contractor positions and really was deliberately vague so the end-client didn't have to think too hard about each contractor they currently have and what they actually do. I also seem to be the only one who is concerned at this vagueness in the ToR and is currently trying to inform the end-client that IMO it doesn't represent a true picture of my company's working relationship with the end-client.

Am I right to argue this? If I didn't I think would be found caught by IR35 as I have agreed that the client can have this direct control (even though they do not currently have this right, either in company/agency contract nor in actual working relationship).

If the end-client does insist on this agreement and I assume I would have to declare myself caught, after agreeing to direct control, do I have to class the period before as caught as well or only when the working relationship went from one of being not caught to that of being caught (though as I stress I still don't think I am even if this document says I have agreed to direct control).

I can of course refuse to agree but then this would create a bad working relationship and of course it has been written and states the client's view of the working relationship, however wrong I feel it is, and I bet under a review/challenge this document would rear its ugly head once more.

This sort of thing really does not help.

Chaos reigns within.

Reflect, repent, and reboot.

Order shall return.

END OF ARTICLE ▪ FILED FROM LONDON