Trying to arrange a substitute

[northernladuk]

Suddenly renting an office could be construed as either a Sham due to points on business entity test or you have outgrown your home office which is what I will say. When ir35 first cane out everyone had their contracts rewritten which could have been seen as either a scam or just a change In The way you work

If I start renting an office now it does not mean its just to look better. That's what I will say and I will use the office as well.

Fill your boots but read this rather than listen to me...

Will renting an office reduce my IR35 risk? :: Contractor UK

No point manipulating the test

However, there is absolutely no point in manipulating the business entity tests and certainly no point in getting into “the lower end of medium risk”. IR35 is all about “relevant engagements” so if you have a contract for 4 days a week which does not require you to use your own premises, then having business premises is worthless in the IR35 debate on that particular contract.

Breach of director’s duties?

It is also worth remembering that you have duties as a director, which entail ensuring value for money and justifying the spending of company funds. If a faster broadband connection is necessary and only achievable by renting premises and you do actually meet clients at these premises then fine, but it may be difficult to justify (the cost) solely for the purposes of meeting some HMRC risk of investigation tests.

“Keep calm and contract on”, IR35 experts tell contractors following HMRC’s new tests

“However, there is a trap, in that if the contractor is clearly not using that space, then the cost is not being incurred wholly and exclusively for business purposes, so the contractor’s limited company would not enjoy corporation tax relief. HMRC would spot this in the corporation tax return, and the truth would emerge that the office rental was a sham.”

“There is no point in contractors trying to manipulate the tests and there will be no point in trying to delay providing documents if investigated,” adds Cottrell. “HMRC will use its powers to conduct the investigation as quickly as possible.”

Enjoy wasting your money....

[Butcheroo]

Trying to arrange a substitute

I'm starting to think of ir35 as an impossible to predict or cover yourself for entity. You just keep working hoping you never get investigated.

Every contract I have ever had have broken the rules in one way or another when i actually work there regardless of contract terms

This can be from shifting to different projects, once I got asked to check everyone else's calendar to get leave approved. I once got given a business card which I refused to hand out. I've been named in org charts etc. one company even gave me a phone which I hid.

Problem is would they mention all this in court to stitch me up.

Should you walk our when a boss starts not playing by the rules you expect ?

Sometimes I wonder if this is all worth it