Client's control if automatically exempt from IR35

[JazzyFry]

Hi,

My client is automatically exempt from IR35 because of their company size.

Should I still be cautious about not being controlled by the client in the everyday job or does it not apply anymore?

For example:
- having to ask the permission to take time off
- not being able to set my own hours and location
- being named on the client's organisation chart

Thanks

[eek]

Hi,

My client is automatically exempt from IR35 because of their company size.

Should I still be cautious about not being controlled by the client in the everyday job or does it not apply anymore?

For example:
- having to ask the permission to take time off
- not being able to set my own hours and location
- being named on the client's organisation chart

Thanks

Well they aren't exempt from IR35 it's just that the contract falls under the old Chapter 8 rather than Chapter 10 rules. And under the Chapter 8 rules it's the contractor who is responsible for the decision and the tax.

And most of those things scream that the contract is inside IR35..

[wattaj]

Well they aren't exempt from IR35 it's just that the contract falls under the old Chapter 8 rather than Chapter 10 rules. And under the Chapter 8 rules it's the contractor who is responsible for the decision and the tax.

And most of those things scream that the contract is inside IR35..

^^ This.

Which means that the contractor, not the client, is responsible for the determination of IR35 status. Do not be fooled: you're still on the hook.

[JazzyFry]

Well they aren't exempt from IR35 it's just that the contract falls under the old Chapter 8 rather than Chapter 10 rules. And under the Chapter 8 rules it's the contractor who is responsible for the decision and the tax.

And most of those things scream that the contract is inside IR35..

Ok, thank you.

Fortunately, that list was just a hypothetical example. I do have to request my holiday via their system though. I'll have a chat with the HR.

[Protagoras]

Hi,

My client is automatically exempt from IR35 because of their company size.

Should I still be cautious about not being controlled by the client in the everyday job or does it not apply anymore?

Yes. I'd suggest getting the contract and working practices reviewed independently.

I do have to request my holiday via their system though.

That's bonkers! As a third-party supplier there should be no interaction with client's HR systems.

[eek]

Yes. I'd suggest getting the contract and working practices reviewed independently.



That's bonkers! As a third-party supplier there should be no interaction with client's HR systems.

+1 - my current contract is inside IR35 and I don't need to ask for holiday leave - I just announce I'm taking days off and that's it. Equally I give notice if I can because that's just politeness.

[jamesbrown]

Oh dear, you should be dealing with procurement, not HR, and asking permission for time off is laughable. You inform them as a matter of courtesy. Your working practices are most likely inside if those terms are representative. Also, you’d better make doubly sure that they are a small company under the Companies Act 2006.

[wattaj]

...you should be dealing with procurement, not HR...

Whilst this would be an ideal scenario, it is highly unlikely to be the case for the majority of contractors. That's just the way it is.

[jamesbrown]

Whilst this would be an ideal scenario, it is highly unlikely to be the case for the majority of contractors. That's just the way it is.

There's nothing wrong with working inside IR35, but dealing with HR is a symptom of a client that thinks you're a bum on seat resource, not a supplier.

[Lance]

^^ This.

Which means that the contractor, not the client, is responsible for the determination of IR35 status. Do not be fooled: YOU ARE ON THE HOOK.

FTFY