Appointing a substitute via Rentacoder

[icarus]

I just had a thought... Every contract has a substitution clause, for IR35. When the Revenue investigate, their first question is "has the substitution clause been invoked?" and the answer is usually "no". Well, here's an easy way to answer "yes":

Find a small, isolated part of your project (an admin utility or something). Write up a detailed functional spec for the task and post it as a bid request on a freelance site like Rentacoder. State in the bid that you need to do this work but that you are too busy (which might very well be true). Find someone from a low-cost region to do it for you. I have done quite a few jobs on Rentacoder and, believe me, you can get a lot done for £50. Keep a record of your correspondence with the coder and keep track of the code that you put into production (of course, you have the final say over what code you use). Congratulations; for a small outlay you have just exercised your right to appoint a substitute!

Has anyone tried this?

[Qdos Consulting]

Good idea, although I don't think it would constitute substitution. Substitution is where a replacement is sent, perhaps for a very short length of time, and fulfills the entire 'role' of the initial representative/supplier.

Using Rentacoder to subcontract small elements of your work would constitute just that - subcontracting. It is defined by HMRC as 'engaging helpers'. Nevertheless, it is still a strong indicator and, whilst it may not have as huge an impact as an exercised RoS, it would certainly put you a step ahead in an IR35 enquiry.

Obviously if you were in a position to assign larger chunks of your work to a remote replacement then that may be closer to substitution. It very much depends on the specific services you provide.

[ft101]

Taking the OP's suggestion a step further, networking between contractors of similar talents (or put another way, friends, aquaintances etc) would allow each to 'swap' days within their projects, under the substitution clause. In business, its common to have close working relationships with what could also be considered competitors - wedding photographers do this, so that if they are ill or sick on the big day, they get another in to substitute.

Could this work? Just do a token substitution day with a mate who contracts in the same field

[Qdos Consulting]

That has the potential to work really well, although I think you would need to plan it carefully so it didn't look too contrived.

Lots of instances when a substitute has been provided are engineered specifically with IR35 in mind. Nothing wrong with that...

[ft101]

Originally Posted by Qdos Consulting

That has the potential to work really well, although I think you would need to plan it carefully so it didn't look too contrived.

Lots of instances when a substitute has been provided are engineered specifically with IR35 in mind. Nothing wrong with that...

Could call it a QA check, rather than an away day... two sets of eyes better than one etc. In fact, there may be real benefits in such an arrangement, not only to the client but the contractor.