Blackberry on the cheap

[contractorsaccountant0704]

A contractor client of mine has use of a Blackberry provided by the company she provides services to, for no charge, including all calls/rental etc .

Does anyone have experience of this being challenged by HMRC for IR35 purposes?

My point being that as an employee, this might be ok - perhaps it might be caught under BIK rules, if there is private use , but as a contractor ???

all comments welcome

[Craig at Nixon Williams]

Smells like IR35 to me...

Wouldn't be a deciding factor but certainly points towards it.

Craig

[contractorsaccountant0704]

Smells like IR35 to me...

Wouldn't be a deciding factor but certainly points towards it.

Craig

Thanks for the quick response, Craig. I have suggested she reviews this option carefully when she renews.

[TheFaQQer]

Do they give one to all their suppliers?

If it was just for exceptional circumstances (eg. you're on call this week, so here's the on-call phone) then I wouldn't see it as an issue. If it's just for them to use routinely, then that's for permies.

Ridiculous idea to accept it from the client to save a tenner a month.

[DaveB]

There are reasons a client would want to do this, especially with a Blackberry.

If they want proper control of voice and emails concerning company business then a corporate managed device is the way to do it. Depending on the Sector (Govt./Defence/Security etc) then you aren't going to allow use of personal devices for dealing with sensitive information and you are going to want to be able to track calls etc.


Of course this doesn't stop someone using their personal device to do that, but they are less likely to if they have a corporate device for that purpose and there are consequences to breaking the rules.

In that situation IR35 doesn't really apply as it is a condition of the contract that would apply to anyone. Same as having to use a client co. laptop.

[northernladuk]

Customer kit is a pretty small IR35 flag IMO and may tip the favour in a marginal case but isn't something to get your knickers in a twist about. You have to use a client laptop, sit on a client chair and use a client desk, taking the phone as well is hardly going to put you inside. If HMRC investigate and accept those items but try to nail you to the wall over a phone they must have a pretty piss poor case.

If it can be proved that there was a choice then that is enough. Why wear your phone out when the client lets you use theirs seems like a business decision that only suppliers/contractors can make as well. Permies don't get that choice.

Enough theory and back reality though...

Ridiculous idea to accept it from the client to save a tenner a month.

^^ This.

[contractorsaccountant0704]

Do they give one to all their suppliers?

If it was just for exceptional circumstances (eg. you're on call this week, so here's the on-call phone) then I wouldn't see it as an issue. If it's just for them to use routinely, then that's for permies.

Ridiculous idea to accept it from the client to save a tenner a month.

My understanding is that employees doing the sort of work that my client does, also get them as a freebie.

[contractorsaccountant0704]

Customer kit is a pretty small IR35 flag IMO and may tip the favour in a marginal case but isn't something to get your knickers in a twist about. You have to use a client laptop, sit on a client chair and use a client desk, taking the phone as well is hardly going to put you inside. If HMRC investigate and accept those items but try to nail you to the wall over a phone they must have a pretty piss poor case.

If it can be proved that there was a choice then that is enough. Why wear your phone out when the client lets you use theirs seems like a business decision that only suppliers/contractors can make as well. Permies don't get that choice.

Enough theory and back reality though...





^^ This.

This makes a lot of sense to me, but I think that the costs pm will be more than a tenner
as I say, I have advised her to check this out when she next reviews her contract. I think the motto is
"contractor beware!"

[TheFaQQer]

This makes a lot of sense to me, but I think that the costs pm will be more than a tenner

I pay a tenner a month for my business tariff, with everything I need and more.