Little bits on the side

[SpontaneousOrder]

Hey.

Would having concurrent small incomes (maybe £100 a month each) from 2 or 3 other sources, while on main client site monday-friday daytime, help at all with my IR35 standing?

I used to do some bits and pieces for a few guys, some of which I can start doing again. And also i can earn a little from doing some writing.

Is doing more of this kind of thing worth it from an IR35 perspective? Or do the small incomes make them insignificant?


Thanks.

[aoxomoxoa]

Hey.

Would having concurrent small incomes (maybe £100 a month each) from 2 or 3 other sources, while on main client site monday-friday daytime, help at all with my IR35 standing?

I used to do some bits and pieces for a few guys, some of which I can start doing again. And also i can earn a little from doing some writing.

Is doing more of this kind of thing worth it from an IR35 perspective? Or do the small incomes make them insignificant?

Thanks.

Apart from all the other things that HMRC consider re. IR35, they look at your client work on a contract by contract basis, so even if your "bits on the side" are outside IR35, your other gigs will be looked at in their own right.

PS: Expect a bollocking from the usual suspects for not searching this info out yourself - it's been covered numerous times and funnily enough the forum is searchable.

[northernladuk]

It will help with the Business Entity Tests as you do look more like a business with multiple revenue streams so will put you at a lower risk of being investigated. If you do get investigated though IR35 is on a contract by contract basis. One could be inside, the other could be outside.

[Old Greg]

It will help with the Business Entity Tests as you do look more like a business with multiple revenue streams so will put you at a lower risk of being investigated. If you do get investigated though IR35 is on a contract by contract basis. One could be inside, the other could be outside.

Which is the BET question on multiple revenue streams?

[jamesbrown]

Hey.

Would having concurrent small incomes (maybe £100 a month each) from 2 or 3 other sources, while on main client site monday-friday daytime, help at all with my IR35 standing?

I used to do some bits and pieces for a few guys, some of which I can start doing again. And also i can earn a little from doing some writing.

Is doing more of this kind of thing worth it from an IR35 perspective? Or do the small incomes make them insignificant?


Thanks.

No, it will make absolutely no difference to your actual status, which is contract-by-contract. If you have a reasonable mix of concurrent clients on a regular basis, it won't hurt in terms of demonstrating that you're in business on your own account, but that isn't what you describe and, in any case, this would be a secondary pointer. It will also make no difference in terms of the BETs. Take a look at the scenarios in that document, "Praveen" for example.

http://www.hmrc.gov.uk/ir35/guidance.pdf

[No2politics]

Which is the BET question on multiple revenue streams?

My understanding is that before hmrc conduct an ir35 investigation, they write to you and ask you if you have considered IR35. At that point you provide them with your answer together with evidence. This evidence will be the answers to the BET and any other evidence that you have- I suspect having multiple income streams would be looked on favourably but who knows.

[SueEllen]

My understanding is that before hmrc conduct an ir35 investigation, they write to you and ask you if you have considered IR35. At that point you provide them with your answer together with evidence. This evidence will be the answers to the BET and any other evidence that you have- I suspect having multiple income streams would be looked on favourably but who knows.

HMRC can write to me and ask but it will be my insurer answering.

[d000hg]

It will help with the Business Entity Tests as you do look more like a business with multiple revenue streams so will put you at a lower risk of being investigated. If you do get investigated though IR35 is on a contract by contract basis. One could be inside, the other could be outside.

However does "a few hours on the side" really constitute multiple streams? Loads of permies do a bit of moonlighting after all - computer repair, little websites, bits and bobs on RentaCoder.

[SpontaneousOrder]

Ok, thanks for the replies. I don't necessarily understand what all of the terms mean, but now I know what to google.
For me it's just a case of understanding whether it's worth doing things for people even though it's a pain in the arse - if there's no benefit other than a few quid extra, then I'll just stop doing it.

[mudskipper]

According to something I read recently, HMRC are focussing on people where they believe that all their contracts in that year have been inside IR35. So having one or two jobs that are clearly outside will help avoid being investigated in the first place (if what I read is true). Will see if I can dredge up the link.


Edit: http://www.contractoruk.com/news/001...year_high.html

"His comments chime with what HMRC’s deputy director Rowena Fletcher said was the priority of its four IR35 enforcement teams – targeting PSCs whose every contract is caught by IR35."