Example Contract within IR35?

[Martynt74]

Hi All,

My wife needs to switch from being a PAYE employee to a Contractor due to us emigrating to Spain and needed to be self employed in Spain for Tax purposes.

Her company have asked her to come up with a contract, but all the examples i can find are for a typical contractor agreement, however i'm after one that would include the regular benefits of being a contracted employee as they've agreed to just pay a fixed rate and then holidays/sick are included rather than adjusting billing rates.

I'm not sure whether it can be as basic as a regular employment contract but with payment terms to be outside of regular payroll.

 

[Martynt74]

Bit confused, outside IR35 = contractor, inside IR35 = staff/PAYE.

Is she still working for a U.K. based company?

I would be getting a tax specialist/accountant involved to be honest.

Yes, the agreement is effectively to be an employee with the benefits of receiving a set salary each month rather than adjusting for days worked and covering any sick leave etc. However since she'll be working from Spain she can't be regular staff/PAYE.

The Tax side is all taken care of on the Spain side with our accountant over there, however it's just the wording on the contract i'm trying to pull together, as standard contractor contracts seem to be worded that work won't be provided etc or equipment not provided. Something that she would still want to be the case.

I'm thinking the best thing would be to just re-word the payment section of her Employment Contract to state payment via invoice.

 

[Martynt74]

I think you need to get advice from a specialist in Spain; most European countries have their own equivalent of IR35, and just because she will be working for someone in another country doesn't necessarily mean it won't apply.

Yeah, we have it's fine. She's classed as an "Autonomo" and the same thing in spain is effectively a "False Autonomo", however it only applies to companies within Spain.

I ended up just rewording the main contract template we had to include things like annual leave and for the company to supply equipment, so should be all good