Reply to: Company branded clothing

[FarmerPalmer]

Slush Puppie Ltd v HMRC (2012)

IR35: Integration Explained - Contractor Weekly

[jjdarg]

My dad is an accountant and I often hear him on the phone, late at night, asking folk what they're wearing.

Wiping coffee off my keyboard...

[Batcher]

Regarding IR35, the 'part and parcel' or integration employment status test questions whether the worker is integral to the client's business or merely an accessory to it. A genuinely independent contractor should only be an accessory to their client's organisation as opposed to being part and parcel of it. It should be clear to those in the workplace that you are an independent contractor.

Again, I don't disagree with the sentiments but the OP said the ClientCo wanted to "have a corporate look when we go onto customer sites".

If the ClientCo wants to give the impression of a 'corporate team' to his customers then I don't think it's a pointer to being treated the same as an employee just because he asks you to wear the team t-shirt. It may come under D&C so as long as he makes sure he passes one of the other pillars he should be ok.

[Forbes Young]

Just wanting to clarify - the company I'm contracting at wants everyone in the team to have branded polo shirts. Whist I agree in principle, as a contractor will this not be classed as an employee benefit and dump us firmly inside IR35? My accountant has advised me not to touch it and said if I want a branded shirt then I should have my own Ltd company name and logo on it. What happens if we were to buy our shirts - at a nominal rate - does that impact us at all? What are our options? We want a unified look in the team but we have a lot of contractors here who are not sure. They also want us to have a corporate look when we go onto customer sites. As we are representing the company we work at, and not our own Ltds - is that different?

Regarding IR35, the 'part and parcel' or integration employment status test questions whether the worker is integral to the client's business or merely an accessory to it. A genuinely independent contractor should only be an accessory to their client's organisation as opposed to being part and parcel of it. It should be clear to those in the workplace that you are an independent contractor.

[SimonMac]

Wasn't there some CUK branded T-Shirts?!

Admin, time for a new order!

[Jeebo72]

I've been investigated by HMRC* for IR35 but the subject of what I wore to work didn't come up. From my experience, the ClientCos answer the closed questions that are sent to the HR departments by HMRC via snail mail. HMRC didn't visit any of the ClientCos in person to interrogate the staff.

Maybe they've changed how they do IR35 investigations now though

*It was HMC&E when I was investigated

They haven't. This thread is complete balderdash. Wear the t shirt if you want. If not tell them to do one.

[Batcher]

The problem comes if you are investigated in relation to IR35. Then when your ClientCo employees are questioned about your working practices, they will tell HMRC that you were dressed like them. And if they insist on that i can only imagine there are plenty of other pointers that you are treated as an employee. Needless to say this can cost you more than the price of a polo shirt or two.

I've been investigated by HMRC* for IR35 but the subject of what I wore to work didn't come up. From my experience, the ClientCos answer the closed questions that are sent to the HR departments by HMRC via snail mail. HMRC didn't visit any of the ClientCos in person to interrogate the staff.

Maybe they've changed how they do IR35 investigations now though

*It was HMC&E when I was investigated

[sal]

I agree in principle with Cojak but, in reality, has an accountant or HMRC ever asked anyone what they wear at a client site?

The only time I would imagine it being questioned is if you claim for work clothes (which isn't allowable) through your expenses.

The problem comes if you are investigated in relation to IR35. Then when your ClientCo employees are questioned about your working practices, they will tell HMRC that you were dressed like them. And if they insist on that i can only imagine there are plenty of other pointers that you are treated as an employee. Needless to say this can cost you more than the price of a polo shirt or two.

[JRCT]

I agree in principle with Cojak but, in reality, has an accountant or HMRC ever asked anyone what they wear at a client site?

My dad is an accountant and I often hear him on the phone, late at night, asking folk what they're wearing.

[Batcher]

I agree in principle with Cojak but, in reality, has an accountant or HMRC ever asked anyone what they wear at a client site?

The only time I would imagine it being questioned is if you claim for work clothes (which isn't allowable) through your expenses.

[darrylmg]

Just wanting to clarify - the company I'm contracting at wants everyone in the team to have branded polo shirts. Whist I agree in principle, as a contractor will this not be classed as an employee benefit and dump us firmly inside IR35? My accountant has advised me not to touch it and said if I want a branded shirt then I should have my own Ltd company name and logo on it. What happens if we were to buy our shirts - at a nominal rate - does that impact us at all? What are our options? We want a unified look in the team but we have a lot of contractors here who are not sure. They also want us to have a corporate look when we go onto customer sites. As we are representing the company we work at, and not our own Ltds - is that different?

Do you have to scrabble around on server rooms floors and stuff?
Is there a reason that you could use to justify your client giving you this "equipment"? Once when I was permie I had to wear something of the sort. It had two reasons, 1 as a team identifier and 2 as protection when in the nasty grimy server room.
But as a contractor you could label it as protective clothing maybe...

[prozak]

If this puts you within IR35 you are likely already in.


Don't get hung up on this minor point. Thats just my opinion.

[BolshieBastard]

If the company wanted employees to represent them they should have hired permies...

(At a push,you could ask the company to change colour of the contractors shirts, to differentiate.)

Cojak knows.

[northernladuk]

Just get this printed on the back. That should be enough of a differentiator...

[tractor]

.....

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