Terminate contract prematurely to support IR35 potential case?

[l35kee]

Hi NLUK,

There is no work, I am probably under 10-15% utilised at the moment, it has dried up in the past month or so and now is very quiet, dead quiet.

I am not 100% sure they will do as asked BTW, I am just trying to see if what I am thinking makes any sense and if it does then see what's the best way to do the above.

Thanks,
PM

What are you doing now that you are only 10% utilised?

Are you:

A: Invoicing for 0.5 days a week.
B: Invoicing for 5 days a week.

[ProjectManager]

What are you doing now that you are only 10% utilised?

Are you:

A: Invoicing for 0.5 days a week.
B: Invoicing for 5 days a week.

I am sorry but this is politically incorrect question and I am not going to answer it.

I can only say that I have my moral norms and I most of the time stick to them with some 10-20% deviations here and there.

I consider IR35 not fair hence why I am trying to cover myself to the maximum extent.

[northernladuk]

I am sorry but this is politically incorrect question and I am not going to answer it.

Politically incorrect?? Honestly?!?

Are we allowed to ask what you do the other 90% of the time or is that racist?

I can only say that I have my moral norms and I most of the time stick to them with some 10-20% deviations here and there.

Charging your client for only 10% of work fits in to those norms?

I consider IR35 not fair hence why I am trying to cover myself to the maximum extent.

As WiB says, cover yourself by acting like a business. Playing silly games to get a piece of paper to wave could end up being a complete waste of time.

Either that or just get TLC35 or IPSE+ and stop worrying.

[l35kee]

I am sorry but this is politically incorrect question and I am not going to answer it.

I can only say that I have my moral norms and I most of the time stick to them with some 10-20% deviations here and there.

I consider IR35 not fair hence why I am trying to cover myself to the maximum extent.

LOL

The reason i am asking is that regardless of why you leave a contract, if you are being paid to sit around twiddling thumbs you are most likely inside IR35, REGARDLESS of how you terminate your contract.

[ProjectManager]

LOL

The reason i am asking is that regardless of why you leave a contract, if you are being paid to sit around twiddling thumbs you are most likely inside IR35, REGARDLESS of how you terminate your contract.

Thanks, I agree, good point.

The news that I might not be renewed generated instantly a whole raft of tasks to keep me more than busy for at least two days this week.

I will speak to my client rep and see what they think of the above mentioned approach of me leaving them early.

To confirm - I do my best to act like professional and only bill for what I have worked, I don't play -> stay calm and keep invoicing regardless of how tempting that might be.

[supersteamer]

LOL

The reason i am asking is that regardless of why you leave a contract, if you are being paid to sit around twiddling thumbs you are most likely inside IR35, REGARDLESS of how you terminate your contract.

Why?

ROS - not relevant
D&C - OP is not being directed or controlled if nobody is asking him to do anything.
MOO - Client has obligation to provide work. The client isn’t providing work so not fulfilling any obligation.

If a business wants to waste money asking another business do nothing then surely that’s bad management but not a tax issue.

[TonyF]

MOO - Client has obligation to provide work. The client isn’t providing work so not fulfilling any obligation.

You want to have a lack of mutuality of obligation.

If the client is obliged to offer work that's not a good thing.