With respect the problem here lies with your agent’s inflexibility. I suspect this stems from a lack of proper understanding of IR35. From my experience a lack of understanding will result in IR35 been ignored or over compensated for. In this case the latter. The agent fears that by acknowledging a particular number of hours worked each week, that this will constitute control over the contractor. Control is one of the pre-requisite conditions for IR35 to apply. The connection between working hours and control is indirect and rather weak.
The requirement to conform to a usual working week is common to almost all contractors and is merely a logistical practicality and will not usually be taken as meaning a contractor is controlled providing that their contract is properly drafted to be outside of IR35 i.e. the contract should make it clear that the contractor is solely responsible for deciding the means and methods adopted to carry out the contract works. The work provider will set the time limits and parameters to be met but the contractor will use their own judgment to decide how the work is carried out. Contractors do not work in isolation in a goldfish bowl; they provide their services in a real world environment which necessitates liaising with and working alongside permies who work 9 to 5, 5 days a week. It is a logistical practical requirement that they must broadly work similar hours to the staff that they are required to communicate with on a daily basis in order to effectively provide the services they have been contracted to carry out. We should also keep in mind that the information of working hours is requested by the Halifax as part of standard criteria for assessing contractors solely for its underwriting purposes. The agent is not asked to provide this information to HM Revenue & Custom as part of an IR35 enquiry!
Moving on from this, I’m quite confident that the broker dealing with your mortgage will overcome this issue by presenting your time sheets and business bank statements. I am also happy to look into this for you if you send me a PM and let me know which broker you are dealing with.
John Yerou
MD of Freelancer Financials
The requirement to conform to a usual working week is common to almost all contractors and is merely a logistical practicality and will not usually be taken as meaning a contractor is controlled providing that their contract is properly drafted to be outside of IR35 i.e. the contract should make it clear that the contractor is solely responsible for deciding the means and methods adopted to carry out the contract works. The work provider will set the time limits and parameters to be met but the contractor will use their own judgment to decide how the work is carried out. Contractors do not work in isolation in a goldfish bowl; they provide their services in a real world environment which necessitates liaising with and working alongside permies who work 9 to 5, 5 days a week. It is a logistical practical requirement that they must broadly work similar hours to the staff that they are required to communicate with on a daily basis in order to effectively provide the services they have been contracted to carry out. We should also keep in mind that the information of working hours is requested by the Halifax as part of standard criteria for assessing contractors solely for its underwriting purposes. The agent is not asked to provide this information to HM Revenue & Custom as part of an IR35 enquiry!
Moving on from this, I’m quite confident that the broker dealing with your mortgage will overcome this issue by presenting your time sheets and business bank statements. I am also happy to look into this for you if you send me a PM and let me know which broker you are dealing with.
John Yerou
MD of Freelancer Financials
Comment