Q. I have been associated with a company, on and off, for many years. We know each other very well. I no longer have a written contract with them, simply invoicing them on a weekly basis. With respect to IR35; Is there a positive in my favour in NOT having a contract?
A. Not having a contract would not necessarily have a ‘positive’ reflection on your IR35 status, however HMRC state in their Status Manual “A valid oral contract between an engager and a worker is no less legally binding than a written contract. It is important to establish the true terms of an oral contract.” (ESM0508) Therefore, although written terms are not essential, it is imperative that both your company and your client are clear that the working relationship is that of a businesses to business arrangement. In order to clarify your working relationship, you may wish to consider signing a Confirmation of Arrangement document with your client, rather than a full written contract for services.
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