Interesting IR35 Problem

[willendure]

I would go back to them and say make the whole thing outside IR-35 or no deal. Maybe once they realize they are asking for an arrangement that just doesn't work, they will see sense and take on your business properly.

[eek]

thinking about it - B0redom posted elsewhere last night the all important question

“Can I argue that this is necessary (business expense) with a straight face if (the tax man) asked about it?”

And I think that is the important question here about the security clearance.

“Can I argue that the security clearance is valid with a straight face given that the company isn't managing / responsible for the work (as it is inside IR35 and the client retains responsibility / management control)?”

Because unless the company is responsible for the work (i.e. the work is outside IR35) you couldn't truthfully answer the question about the use of the security clearance - so I would be going back and saying that the clearance people say that the company has to be responsible for the work or you can't take it on...