Free days as non-IR35 pointers

[evilagent]

What if, every couple of months, you work at a client site for free.
That is, show on your invoice 5 days on-site, but only invoicing for 4 days, and claim the one day was to fix bugs/problems for free, ie no charge.

By doing work for no payment, are you showing that you are taking a commercial risk, and therefore outside of IR-35?

Just curious, and having a think as the weekend looms ever nearer.

[BlasterBates]

It is indeed a pointer outside IR35.

[jamesbrown]

Sure, it would be a minor pointer if you're required to fix errors without charge. Not a major pointer.

[DirtyDog]

You'd need to have some kind of evidence that you were actually taking a risk and doing bug-fixing etc. on those days, otherwise HMRC would argue that you weren't taking a risk, just trying to make it look like you did.

For the loss of a day's income regularly vs the cost of insurance, I know which one I'll be taking.

[GB9]

Free days:
Fix my own cock up
May win a decent piece of work
Doing something I really enjoy / have an interest in

Non free days:
Any day that permies are doing free so I should too

[northernladuk]

It would be a very big pointer.... pointer towards you being an idiot.

[Erhaab]

[QUOTE=northernladuk;1898724]It would be a very big pointer.... pointer towards you being an idiot.[/

My favourite post of the week. Made me spit coffee on the screen.

[Bunk]

The work would have to have actually been done though. Adding a couple of non-billed days onto an invoice when there was no actual work done would be pretty risky. It might count as fraud but IANAL.

[Craig at Nixon Williams]

This isn't one of the three factors (Control, Personal Service & MOO) and so wouldn't instantly exempt you from IR35 - it would only support a conclusion already reached based on the above three factors.

[evilagent]

It would be a very big pointer.... pointer towards you being an idiot.

steady on, old bean!