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 Scottish members out there? 5,930 208
- Trademark Fun 96 5
- What's your best practice shortcut or 'hack'? 1,456 38
- Can I strike off a company by filing DS01 online? 123 2
- VAT Fuel Scale Charge for Fuel on Private/Personal Car 157 3
- Subsistence - god I hate it! 634 14
- How to issue a loan correctly? 175 2
- Would Director's dividends on non-voting C shares risk being classed as "earnings" for NIC purposes? 151 1
- Recycle old study books 349 9
- Share for share exchange 134 3
- Wind turbines 130 1
- Looking for a qualified accountant 509 2
- Locum Doctor claiming costs for Home Office 181 2
- FL Memo - Any Good 402 7
- VAT claim 353 6
- How to reclaim input tax from mixed use redevelopment? 161 6
- Am I allowed Rent A Room Relief? 401 9
- State Pension 1,209 10
- Late Corporation tax return 355 7
- The iIns and outs of VAT 378 6
- Raiders of the Lost Tax File 1,057
- Chartered Accountant in County Down N.Ireland 339
- IPP (International Pension Plan) income 287
- National Insurance 241
- valuation of intangible asset FRS10 and FRS20 222
- Joint construction arrangement CIS and VAT 221
- Cass 5 FCA Client Money Software recomendation 205
- Payments on account coded out?? 201
- Non Resident 159
- Franchise income and costs 139