We have a client who has his own limited company
He is going to be contracting for another company, who want to pay his a daily rate, plus a profit share - which will be performance based
Is this possible or does it put him in a really dodgy position?
It shrieks to me of IR35 but maybe I am missing something
Also, can anyone recommend someone to help word such a contract
Thank you
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Im not an IR35 expert...
...but isnt the element of risk implied in the proposed terms one thing that would point away from this being disguised employment?
You could ask a lawyer to help prepare the contract, the key bit is that the fee consists of a fixed element and a variable element, which is calculated with reference to whatever the success criteria are
I would agree with Which
Would also be even better if it was stated that the daily rate is actually slightly lower than normal due to the chance of profit share.
This then shows financial risk, which indicates outside of IR35.