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).
- Have i messed up? 601 10
- rates of pay query 174 2
- Recommendation for a good website on exchange rate forecast 104 7
- Year end 332 4
- Test purchases in VAT enquiries 181 3
- Comments on this scenario 55 1
- Related Parties Note 406 9
- Annual Investment Allowance (AIA) 68 1
- Where can I get Quickbooks help 114 4
- loss on carbon credits 95 2
- New HMRC phone answering method ... 554 9
- SAGE con 175 3
- Dazed & confused 155 2
- Goodwill ammortisation 230 2
- Overpayment relief claim 121 4
- How to prepare and Finalize Vat company accounts 227 9
- Concerned about RTI 2014 2,533 63
- Sage 50 Accounts - Opening Bank Account Balance Posted to Nominal 9998 Suspense Account 510 28
- Charity reserves 116 2
- Aggressive HMRC 1,527 16
- Desperately seeking Susan, Sam or anyone with any other name 1,003
- Experience with Islamic investor following Sharia-compliant rules? 543
- Darwinpay Partnership Assessment 359
- Tax efficient holding company structure 286
- S464A Charge to tax: conferring benefit & BIK 271
- auto enrolment - calculation of first pension deduction 209
- Charge out rates in London? 206
- Pension contributions higher rate extension? 180
- Personal consumption by landlord 178
- Interest on Loan to a Company 172