First batch of HMRC IR35 compliance letters out

[Bumfluff]

This was on the contractoruk front page as a story about 10mins ago but it seems to have gone now, contractoruk claimed to have seen the letters, anyone got a letter then ?

thanks

[administrator]

Sorry, had put live before cleared so had to whip it down again, here is the link:
HMRC writes to contractors about IR35 compliance :: Contractor UK

[scooby]

not me, but was going to post this myself... I love the evidence they are looking for:

• Copies of contract reviews that have been undertaken by IR35 experts;
• Copies of invoices that show fluctuating fees billed thus helping to demonstrate that the freelancer had a degree of control over the time they spent carrying out the services;
• Copies of any business tenders;
• Copies of business insurance schedules;
• Documentation in the form of letters or e-mails that demonstrate an absence of control being exerted over the contractor, lack of personal service etc.;
• Details of any substantial investment in business assets, training, advertising and marketing;
• Details of any occasions a contract was terminated early by either party or when contractors were asked to stay away from an end client site for whatever reason whilst permanent staff remained in place.

Not sure i have anything that demonstrates an "absence of control"... Although it I come and go as I please (never go to an office as 90% can be done from home), and let them know what expenses will be incurred when i do need to travel. Maybe this is perfect!

It's started...

[Gaz_M]

not me, but was going to post this myself... I love the evidence they are looking for:



Not sure i have anything that demonstrates an "absence of control"... Although it I come and go as I please (never go to an office as 90% can be done from home), and let them know what expenses will be incurred when i do need to travel. Maybe this is perfect!

It's started...

It's time to really kick start Plan B into operation.
I'm guessing all but around 5% of contractors will be affected by this as it's just about impossible to score highly on the new questionnaire & the 'evidence' listed above.

[BlasterBates]

, and let them know what expenses will be incurred when i do need to travel.

That's not good. That's a pointer to being employed.

It's better that you don't charge expenses i.e. it's covered in your rate.

As for being at home I don't know how good that is, but working in your business premises...now that would be impressive. There is a judgement on one case where the judge found that to be significant.

[Bumfluff]

not me, but was going to post this myself... I love the evidence they are looking for:



Not sure i have anything that demonstrates an "absence of control"... Although it I come and go as I please (never go to an office as 90% can be done from home), and let them know what expenses will be incurred when i do need to travel. Maybe this is perfect!

It's started...

I'm confused by this bit, is this a good thing from an IR35 point of view if you can show times when contractors have been told to keep away from client site and permies not ?

"Details of any occasions a contract was terminated early by either party or when contractors were asked to stay away from an end client site for whatever reason whilst permanent staff remained in place."

[BlasterBates]

I'm confused by this bit, is this a good thing from an IR35 point of view if you can show times when contractors have been told to keep away from client site and permies not ?

"Details of any occasions a contract was terminated early by either party or when contractors were asked to stay away from an end client site for whatever reason whilst permanent staff remained in place."

Showing that you're not paid when not needed is a good thing. It would count for you, particularly as the permies are working there.

[scooby]

That's not good. That's a pointer to being employed.

It's better that you don't charge expenses i.e. it's covered in your rate.

As for being at home I don't know how good that is, but working in your business premises...now that would be impressive. There is a judgement on one case where the judge found that to be significant.

Sorry, lets make it more specific. Hotel costs only. Fuel is covered in my rate. There are occasions I need to go customer sites down south or more than 2.5hr commute. Obviously this cost is passed on.

[Bumfluff]

Showing that you're not paid when not needed is a good thing. It would count for you, particularly as the permies are working there.

Cool thanks

[BlasterBates]

Sorry, lets make it more specific. Hotel costs only. Fuel is covered in my rate. There are occasions I need to go customer sites down south or more than 2.5hr commute. Obviously this cost is passed on.

I don't think that is particularly positive. It's always better where those sort of costs are in your rate. Reclaiming travelling or hotel costs is a permie thing.

Lets put it this way it would be more positive if they didn't, because as an employee you would be expected to have these costs reimbursed. But yes consultancies will sometimes charge for hotels but not always.