Bonus or gift under ir35

[LisaContractorUmbrella]

Doesn't this really come down to terminology though? If it's considered a project completion 'bonus' then what's the harm in taking it as cash providing it's accounted for properly? I'm sure there are plenty of arms-length contracts out there which have performance targets and bonuses written in, why is this any different regardless of whether the permies are offered the same?

In fact if the permies are only offered the gift but the contractor has the option of taking a cash equivalent, doesn't that indicate them being treated differently and therefore positive from IR35 perspective?

Because, at the end of the day, whether you receive cash or artichokes you are still receiving a reward of the same value and for the same reason as a permie

[MyUserName]

Doesn't this really come down to terminology though? If it's considered a project completion 'bonus' then what's the harm in taking it as cash providing it's accounted for properly? I'm sure there are plenty of arms-length contracts out there which have performance targets and bonuses written in, why is this any different regardless of whether the permies are offered the same?

In fact if the permies are only offered the gift but the contractor has the option of taking a cash equivalent, doesn't that indicate them being treated differently and therefore positive from IR35 perspective?

You could desribe this as something which puts you inside IR35 if you tried? If so, then be careful, as that is what HMRC will do.

It is far safer to avoid any grey area that they can prod around in, IMHO.

[xara]

Thanks a lot for all the replies.

Having read the thread so far I don't find myself entirely persuaded either way.

The argument about not doing what permies do, doing the opposite of what permies do etc., seems emotive rather than rational. Permies work on their PCs and hook up to the VPN and write emails and make telephone calls. These form part of their working practises. Should these things be avoided as well?

Of course, the legislation itself is far from rational or logical...

[northernladuk]

Thanks a lot for all the replies.

Having read the thread so far I don't find myself entirely persuaded either way.

The argument about not doing what permies do, doing the opposite of what permies do etc., seems emotive rather than rational. Permies work on their PCs and hook up to the VPN and write emails and make telephone calls. These form part of their working practises. Should these things be avoided as well?

Of course, the legislation itself is far from rational or logical...

I think you have to apply some common sense at some point....

and oddly enough yes, if you can avoid using client offered PC's internet connections and phones it will help your IR35 case so kinda shot yourself in the foot there.

[xara]

I think you have to apply some common sense at some point....

and oddly enough yes, if you can avoid using client offered PC's internet connections and phones it will help your IR35 case so kinda shot yourself in the foot there.

I didn't say 'client-offered' PCs and connections, but point taken.

[Sausage Surprise]

Take the money in cash....simple