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).
- Any Need to Formally "Sack" Client Company? 455 6
- Easiest and quickest way to reopen dissolved company, for the purposes of having access to funds in the bank account. 323 10
- How to change credit note allocation in Sage 77 1
- HMRC Penalties - are they enforceable? 527 22
- UK company to be a foreign entity 76 1
- Owner/Director consultant plus employment elsewhere 98 4
- Anyone use Xero for estate agent clients? 148 3
- Growing pains 137 1
- Residents Association Corp Tax 101 2
- Gift to employee 128 2
- Who can I refer leads to? 373 8
- Cash accounting to flat rate scheme 110 4
- How much to charge for Ltd company accounts ? 154 1
- new capital structure ltd with investors 307 5
- Can Directors be removed without consequence? 151 2
- Benefit of my ACCA membership to my Non Qualified Employer 280 4
- Directors/owners taking too much cash... 1,865 17
- Minutes & Dividend Vouchers 412 12
- Private Healthcare Benefit In Kind 170 4
- PAYE Refund Farce At HMRC 731 9
- DTR : TIOPA 2010 Section 42 437
- CTA study material 394
- Sect 102 TMA 1970 292
- Sage Forecasting - Print filename 268
- Pre incorp expenses 252
- Relief on French Tax Deposit? 231
- Anyone have clients that use Pay4Later to offer customers credit? 219
- Slight twist on employment related securities 199
- How to claim additional losses after mistake in CT return 163
- What is the tax position if I am working overseas but via a UK agency? 145