Enforced Contractor Layoff in December

[Bluespider]

To clarify, everyone needs the 2 weeks off in any given year.
its not enforced for permies over xmas though.

I get that its cost reduction during a time where nothing is happening AND it sorts out the requirement for contractors.

All I was wondering about was if there was any contractual reason that would make this a bad move from the clientco point of view.

[northernladuk]

To clarify, everyone needs the 2 weeks off in any given year.
its not enforced for permies over xmas though.

I get that its cost reduction during a time where nothing is happening AND it sorts out the requirement for contractors.

All I was wondering about was if there was any contractual reason that would make this a bad move from the clientco point of view.

Contractually ... NO. Reputational in the long run.. YES

[BolshieBastard]

Dont see why so many people have an issue with this, either that or they're just money grabbers.

Current client is extending me into December then a break with a new contract starting January.

I get a nice 3 week break instead of 2 that I normally would take this time of year. Sorted.

[v8gaz]

Last year i got an exception to work. Saved thew client 18 million over that time. Get some big boy projects and stop whining.

[centurian]

Indeed hence the financial risk but it's still imposed to all so not a differentiator in its own right.

Pretty sure being told not to come in, while permie's still have to is a very strong defence against IR35 - it was mentioned as a factor in a successful judgement against IR35 a few years back.

Silver bullet, not quite - but I'd feel very confident if furloughed (the term for it) during a gig.

[northernladuk]

Pretty sure being told not to come in, while permie's still have to is a very strong defence against IR35 - it was mentioned as a factor in a successful judgement against IR35 a few years back.

Silver bullet, not quite - but I'd feel very confident if furloughed (the term for it) during a gig.

Absolutely correct but read my comment on page 2. The op explicity mentions contractors AND permie..

[MrMarkyMark]

Absolutely correct but read my comment on page 2. The op explicity mentions contractors AND permie..

Ths is a type of block leave. Most banks enforce it for both Perm and contract.
Obviously, clients would rather that contractors took this off at christmas, as there is little going on.

Its a little inconsistant though, as I have never been asked to take it.

I can confirm, however, that a mate of mine fought an IR35 claim, against a quite iffy 5 year contract, on the basis of an enforced unpaid time off.
HMRC dropped it on the basis of this alone.

[northernladuk]

I can confirm, however, that a mate of mine fought an IR35 claim, against a quite iffy 5 year contract, on the basis of an enforced unpaid time off.
HMRC dropped it on the basis of this alone.

I do find that very hard to believe. A mitigating factor maybe but not a 5 year gig on the basis of that alone. I didn't think they give a single reason for dropping investigations either.

[MrMarkyMark]

I do find that very hard to believe. A mitigating factor maybe but not a 5 year gig on the basis of that alone. I didn't think they give a single reason for dropping investigations either.

You are free to believe exactly what you want .

Maybe there were other factors, but I can assure you that the final decision was made due to that fact of having enforced time off.
To be honest other contractors and me thought he would be totally caught, we had been joking about it for a few years.
It puts things into perspective sightly, with regards to the actual risk of being IR35 caught.

[pr1]

You are free to believe exactly what you want .

Maybe there were other factors, but I can assure you that the final decision was made due to that fact of having enforced time off.
To be honest other contractors and me thought he would be totally caught, we had been joking about it for a few years.
It puts things into perspective sightly, with regards to the actual risk of being IR35 caught.

indeed, risk of investigation approx 1/1000 *
chance of losing (assuming you have qdos/ipse etc cover) about 1/100? **

1 in 100k chance of IR35 caught (until april 2017 obv)? yet some people(!) spend minutes/hours per day worrying about it

*In full: The Abbey Tax response to the Intermediaries Legislation (IR35) discussion document | The Abbey Tax Blog
section 2, 2nd paragraph
** complete guess