IR35 - Day Rate

[NewBoy]

One of the items that seems to potentially make a contract sit within IR35 is the fact that we charge by day rather than by 'task'. Apart from being ridiculous in the sense that I don't know a single permie that knows their day rate because they are paid to complete a role over the course of a year...surely every company charges per day/per hour?

I know that sometimes there may be a risk & reward approach to a contract with a major company which is then done at task level...but in truth even that is worked out using a day rate as a starting point...so it is nonsensical for Gordo to pick up on this one...however, it appears that he does.

So...how do you guys get around the mentioning of a day rate on a contract or do you just accept it and ensure that the other incriminating things don't apply?

[Sockpuppet]

A day rate does not indicate IR35. Think about all the consultants that are supplied thier businesses charge them out on a day rate so why can't my business charge me out on a day rate?

[PAG]

I am on a daily rate. This does not mean that I automatically come under IR35.

[Bigbird]

Quite the opposite was said to me by HMRC during a recent compliance visit to one of my clients. He reckoned that a day rate (as opposed to an hourly) was a pointer to being outside IR35 as on a day rate the contractor would be paid the same whether he was working on the client's project for one hour of the day or 23, hence involving an element of risk to the contractor.

[Bluebird]

isn't an hourly rate though just a 'fraction' of a day rate ?

i.e. one eighth of a day ?