Q. I have secured a contract position in a UK government dept that uses the CAPITA CL1 framework. So the contract will be CL1. Everything I have read online about this contract points to it not being IR35 or SDC friendly. Therefore can I assume that because it is a CL1 contract it will be deemed inside IR35 just by the fact that’s its CL1? Is there any point getting a contract review done?
A. In our experience of assessing CL1 contracts there are in fact many different versions of this contract, some of which are inside of IR35 in our opinion and some of which are outside of IR35 so just because the contract is a CL1 agreement does not automatically mean that the contract is inside of IR35. Also from our experience the CL1 terms are usually an annex to an additional set of terms which could also help determine the overall status of the contract itself. In my opinion a contact review will still be beneficial because there are so many different versions of this type of contract. In an IR35 enquiry it helps to show due diligence too. If you do have your contract reviewed you might wish to consider having your working arrangements reviewed alongside the contract as your working practices will also be crucial in an IR35 enquiry.
This answer was provided by Qdos Contractor
The official view of the Crown Commercial Service in terms of CL1 and other procurement alternatives (Digital Outcomes and Specialists and GCloud) is:
“The Key difference between Contingent Labour roles and other types of roles …
Employment agencies generally find Contingent Labour workers for roles where the worker enters into a contract directly
with a government body. However, for output based technology, digital and cloud roles, the contract is between the
supplier and government body, as legally it is the supplier who delivers a service and accountable for the specialist’s
defined scope of work.”
In addition, it states that “Supervision and direction (for CL1) is provided by the hirer within the department/team that hires the worker.
The hirer within the department/team that hires the worker carries the responsibility for outcomes of work, not the
agency/supplier that provides the worker.”
The next iteration of the framework will expect the prime supplier (currently Capita) to operate a payroll service.
Just a thought I thought CL1 was a zero hours contractual arrangement would this impact the IR35 Status.