Remote Contracting

[seventieskid]

I've recently agreed terms a contract where I can spend the entire contract working from home. My home is not within commuting distance of the client, so I fly (in a plane !) periodically to the client site.

I've agreed to meet the cost of all travel, meals and accomodation associated with the travel.

I'm positioning myself within IR35, but claiming all the above expenses as legitimate business expenses, plus I'm claiming expenses for light/heat/telecoms at home.

Question: Am I correct in assuming I fall under IR35 and if so can I still legitimately claim the expenses I'm currently claiming....?

SeventiesKid

[tim123]

1) why are you positioning yourself within IR35?

2) Yes, you can claim the travelling, but the IR are clamping down on some of the expenses that you can claim for use of home office.

tim

[seventieskid]

I submitted my 'situation' and contract for review by the IR, no suprise it came back within IR35.

[Pondlife]

I submitted my 'situation' and contract for review by the IR, no suprise it came back within IR35.

D'oh

Lesson learnt then?

[maverick]

I submitted my 'situation' and contract for review by the IR, no suprise it came back within IR35.

What reasons did they say your contract is inside IR35?

[Lockhouse]

If you're working off site, how can there be any direction and control and how can it be a requirement for personal service as the client doesn't know who'll be performing the work? Get a proper contract review from Bauer & Cottrell and start again.

It's more likely for hell to freeze over than for HMRC to declare a contract outside. Also by asking for an opinion from HMRC it is possible that you invalidate any IR35 insurance you may take out in the future.

[DimPrawn]

I submitted my 'situation' and contract for review by the IR, no suprise it came back within IR35.

Winner of the CUK most stupid IT contractor award 2006 goes to.....(opens gold envelope)...seventieskid...

[triboix]

If you're working off site, how can there be any direction and control and how can it be a requirement for personal service as the client doesn't know who'll be performing the work? Get a proper contract review from Bauer & Cottrell and start again.

It's more likely for hell to freeze over than for HMRC to declare a contract outside.

Yeah, do not expect HMRC to be fair only because it's a goverment body!

Also by asking for an opinion from HMRC it is possible that you invalidate any IR35 insurance you may take out in the future.

I was not aware of that! What is the reason for it?

[Lockhouse]

I was not aware of that! What is the reason for it?

It's just that some insurances are invalidated because when you take some insurance you must genuinely believe you are outside IR35 (cough). Submitting your contract to a review by the IR could be seen to refute that point of view, whilst having a specialist negotiate changes on your behalf could be seen to reinforce it.

Always get you contract reviewed by a specialist, not HMRC.

[triboix]

It's just that some insurances are invalidated because when you take some insurance you must genuinely believe you are outside IR35 (cough). Submitting your contract to a review by the IR could be seen to refute that point of view, whilst having a specialist negotiate changes on your behalf could be seen to reinforce it.

Always get you contract reviewed by a specialist, not HMRC.

Good to know. Anyway, I wouldn't give my contract to HMRC without them asking for it!