How near do you think this is to falling within IR35?
I’d be interested in views as to how near (or far) the following might be from falling within IR35. By all means ask for further clarification if required.
- Do consultancy tasks (through a “service company”) for one client for several years providing skill and expertise that the client does not have.
- Not precluded from doing work for others (but have not done so in recent years).
- Company has been trading for over 20 years.
- No written contract.
- Tasks vary from as little as half-hour to several days often spread out over a few weeks. Note that it is not known at the outset that a particular task may take more than a day or so – it depends on the feedback from the client’s customers / potential customers.
- Overall, on a monthly basis, time spent can vary from a few hours to a number of days (rarely more than 4 or 5 days in a month, although on one occasion it went as high as 13 days).
- Work from home on own (no control or supervision) using own equipment.
- No ongoing mutuality of obligation, although it could be argued that once a task is started, it is anticipated that it will be seen through (e.g. similar to if one engaged a lawyer to deals with contracts for a customer – one would expect that he would see it through). But at no time is there an obligation to take on new tasks or for the client to provide new tasks.
- Within the demands of the tasks (e.g. timely replies), work is carried out whenever it suits.
- Theoretically, could be liable for consequences of poor / faulty work, both in terms of redoing at no additional fee or even for loss of profits etc. of the client. It might ever come to this in practice, but the potential is there.
- No benefits in kind – just fees billed quarterly at a daily rate.
- Substitution is not excluded, but then neither is it included (as said before, no written contract and it has never come up).
- Sorry ignore me 582 14
- CG34 approved "without prejudice" 205 3
- Is this a scam? 275 4
- Exactly which business miles can I claim from my employer? 1,051 16
- SAGE V12 159 4
- Do I need to report this to SOCA 2,174 21
- How do I calculate the VAT due (cash basis) on receipts which suffer a cis deduction? 170 3
- VAT questions 269 3
- Invoice Help 87 3
- Accounts formation/ speculative advertising 249 5
- Should Spanish VAT apply ? 150 2
- Dissolve a Ltd Company - How much do you charge? 541 11
- Donaldson v HMRC case being heard tomorrow! 474 4
- Not ANOTHER bogus HMRC email? 234 3
- Self Assessment Tax Return Penalties 192 4
- Interest on loans between companies 129 3
- One off meeting new client 388 5
- Corporate shareholder question 94 2
- Furniture Rental Business 241 7
- Deaf clients 240 4
- Proposed Amendments to IAS 1 614
- Property exchange - 8-year legal delay following fall-out 516
- Accounting for Insurance Premium Financing 375
- SAGE Payroll Data for Import to MS Dynamics AX 288
- Cancelled 270
- Cancelled 233
- Sage Report Designer - Nominal Activity in Currency 178
- Have you staged yet for auto enrolment? 174
- Probiz 157
- What's the market like for temps? 150