Training Course as a contractor - IR35

[User4004]

Hi,
Wondering if people are able to help please?!

I am on my first contract and my company would like to send me on a training course. This course is linked to the methodology in which I work, rather than the discipline of the role itself. So would be expanding upon my current skill-set, to apply to the role in a more general sense.

If I pay for this myself and claim the money back via my agency, this wouldn't be in breach of IR35?

Thanks!
Jo

[northernladuk]

Hi,
Wondering if people are able to help please?!

I am on my first contract and my company would like to send me on a training course. This course is linked to the methodology in which I work, rather than the discipline of the role itself. So would be expanding upon my current skill-set, to apply to the role in a more general sense.

If I pay for this myself and claim the money back via my agency, this wouldn't be in breach of IR35?

Thanks!
Jo

Your lack of understanding of IR35 is tripping you up here. If you had a better knowledge the answer would be clearer. You would also know that there is no such thing as a breach of IR35. A better understanding of IR35 would help you here and in many other situations that might arise in the future.

Once you've got that knowledge you are in a better position to understand what that training offers and how it would affect your IR35 status. Is it general knowledge/skills that would add to your marketable skillset or is it something specific to the gig need to carry out your duties there, like a particular product they use? The former is something you should be paying for yourself so should avoid at client cost, the later is specific to the role so needed for the gig, use after the gig is irrelevant (even if it's a bonus).

Training is covered in great detail on the forums so you could try using the google search method.
Type in <keywords> site:forums.contractoruk.com
Something like 'client training Site:forums.contractoruk.com will bring up a host of threads asking exactly the same question. For example....

Your question is answered here
https://www.contractoruk.com/forums/...completed.html

Same here
https://www.contractoruk.com/forums/...t-vs-ir35.html

Similar here
https://www.contractoruk.com/forums/...ng-client.html

You see in all those threads there is a discussion around general skills or something specific the client requires.

From all that you will be able to look at your own situation and make a decision.

In general the method of payment is irrelevant if the client is ultimately funding it. The question is more about it being specific or general training. If it's general skills based training the method of it getting paid for by the client is irrelevant. They shouldn't be paying for it at all..

Ulitmately,as anything is around IR35, it's your attitude to risk which is mentioned in all the threads above.

[simes]

Ultimately, as anything is around IR35, it's your attitude to risk which is mentioned in all the threads above.

Quite. Which, roughly translated, means, get on with the course, keep your head down, do the work, get paid, accept you will probably never be investigated, and if you are, that the eventual outcome would have to take into account 35 other transient and ethereal factors before an outcome is decided - before appeals.

Worry less.

[northernladuk]

Quite. Which, roughly translated, means, get on with the course, keep your head down, do the work, get paid, accept you will probably never be investigated, and if you are, that the eventual outcome would have to take into account 35 other transient and ethereal factors before an outcome is decided - before appeals.

Worry less.

Which is probably the answer.. BUT... read up on IR35 and understand the risks before you take the '**** it' approach. There is a difference between accepting a risk you understand and just flailing around in the dark.

[Hobosapien]

I'd be wondering why the client is willing to put you through training and would be assessing the working practices and the client personnel's attitude towards contractors in case you are already firmly within IR35 in their eyes if not also your own after looking into it.

It's likely that come next April private sector clients will determine IR35 status, as public sector clients already do, so any contract that looks like it may extend beyond then needs assessing now to avoid potentially x years of retrospective taxation.

If you've already done due diligence and are comfortably outside IR35, with independent review, then not sure accepting some freebies off the client would suddenly alter that stance if some of the main pillars for being outside IR35 are still intact.

[Larsen Howie]

Hi,
Wondering if people are able to help please?!

I am on my first contract and my company would like to send me on a training course. This course is linked to the methodology in which I work, rather than the discipline of the role itself. So would be expanding upon my current skill-set, to apply to the role in a more general sense.

If I pay for this myself and claim the money back via my agency, this wouldn't be in breach of IR35?

Thanks!
Jo

As has been mentioned in the above responses, it is somewhat dependant on the nature of the training you are going on.

If it is for legally required items (Health and safety for example) or training on client bespoke systems that you would not reasonably know how to use ahead of starting the engagement then it would most likely be defendable from an IR35 perspective.

If the training is however something that will improve your skill set and you could make use of the new training in future engagements (as would seem to be the case) then there could be an IR35 risk introduced.

As a general rule of thumb, I would suggest avoiding any training paid for by the client as it is easily avoided. You should determine what training you require and should also pay for it entirely yourself. If the training being offered is of interest to you however and something you believe you’d benefit from, then you can indeed take part in it so long as you A) Pay for the training entirely (IE. Ensure it’s not partially funded by the client) and B) do not get paid for the time spent undertaking the training.

- Matt T