IT Contractor substitute colleague

[ContractorMonkey]

There are lots of warnings about IT Contractors making use of their right of substitution otherwise it's a sham to have it in the contract.
If there are several contractors in the department performing the same role, is it possible for the contractors to substitute each other for a week (with or without taking time off themselves)? It can be difficult to find a substitute from outside the company with the same skills and level of access to systems. Surely, the company cannot object to this substitution as all contractors have the required skills and level of access?

[Grinder]

We joked about this at my last gig.

I guess you'd have to put them on your payroll for that week, invoice as usual but pay them via PAYE. Same for you in their company.

HMRC if investigating would probably see through it; they're quite tenacious once they have the rabbit in their sites.

[MPwannadecentincome]

Why do they have to be paid PAYE, surely a B2B contract paid against an invoice will suffice?

[Sally BFCA]

Maybe if the substitution clause was abused in they eyes of HMRC; would they bin it, giving contractors even less good pointers for being outside IR35?

[northernladuk]

Isn't covering for a week a bit of a tenuous use of Right of Substitution..

A week looks more like holiday cover which if true would make the substitution a bit of a sham and therefor be arguable in an investigation?

[Grinder]

Why do they have to be paid PAYE, surely a B2B contract paid against an invoice will suffice?

Just throwing ideas around to be honest. You make a good point I can't see why not.

I can't see why holiday-cover can't be used to exercise right of substitution.

I think the general rule here is not to rely on 1 facet of IR35 to stay out.

[northernladuk]

If there are several contractors in the department performing the same role, is it possible for the contractors to substitute each other for a week

Who is going to substitute the guy you pull in to substitute you? You are robbing Peter to pay Paul. Unless you get someone in from the outside the customer is still going to have suffer a weeks break if all his guys are shuffling up to back fill.

[Grinder]

Who is going to substitute the guy you pull in to substitute you? You are robbing Peter to pay Paul. Unless you get someone in from the outside the customer is still going to have suffer a weeks break if all his guys are shuffling up to back fill.

No fella, what is being mooted is Mr A substituting for Mr B concurrent with Mr B substituting for Mr A.