Does one substitution protect me from IR35?

[psychocandy]

I might be a bit thick but most clientcos I've contracted for would throw a bit a wobbler if I brought someone else in, surely they would need passes organising, laptop, network access etc, go on the pointless intro courses you sometimes get, do the mandatory training before doing any work.

I'm missing something I know!

Yep. Agreed. Wouldnt have it I reckon. No way in a million years. Which is not good for IR35 I know.

[FarmerPalmer]

I have just substituted.

I have a piece of work that needed specifying and developing.

I emailed client co and told them I wanted to invoke the substitution clause and get someone else to specify.

Told them how long it would take me, and that would be the maximum that it would take and they would be billed for, and that if the substitute did not complete to the clients satisfaction then my company would be liable to correct at my company's expense, as with all work, under terms of our current contract.

Told them that they would also get the work done faster as it would be done in parallel, and actually I was taking a few days off - which covered it expense wise for them.

Client was ok about it, trusted me to get the right person to do the work. The client did not know my substitute and still has not met them.

Agency took a bit more convincing - wanted a separate contract, but I assured them that it was covered by my company's existing contact, and a new contract would not be a substitution, and that was the clause in our contract that I wanted to test, to verify that we had a true business to business contract.

I liaised with the subcontractor and gave them everything they needed to complete the work.

Subcontractor didn't even meet client or visit site as my company's contract states that my company decides where the work is performed anyway.

Work was completed. Client is happy. Timesheet for subcontractor signed off, and paid to my company.

I'm just waiting for subcontractor to invoice me for his time.

[northernladuk]

Stuff

As previously argued. Is this really substitution and not subcontracting? Either way it is great stuff for IR35 and shows a business has been run but this doesn't look like substituion to me. I make the same points that you still deliver the piece of work you were asked to do so you haven substituted anything, you have just brought in an extra person to provide input in to the final outcome. Being picky I know but interested to know.

[jamesbrown]

As previously argued. Is this really substitution and not subcontracting? Either way it is great stuff for IR35 and shows a business has been run but this doesn't look like substituion to me. I make the same points that you still deliver the piece of work you were asked to do so you haven substituted anything, you have just brought in an extra person to provide input in to the final outcome. Being picky I know but interested to know.

FWIW, I had a contract flagged for that in a recent QDOS review; it had a completely unfettered right to subcontract/assign (without prior approval etc.), but there was insufficient detail on RoS, so I had to have that corrected.