Reply to: Remote Contracting

[seventieskid]

All,

Many many thanks for everybodys advice, it's exactly what I was looking for.

It did make me realise that I should call in the pros. My contract was in the post to an accountancy firm for review by COB yesterday !

All the best,

SK

[VectraMan]

As for the "gold envelope" fellow...you may not find my name inside there my friend...what's your daily/weekly/monthly commuting time ? Got kids, are you working away from home ?

I think most of us would agree you've done well in getting a job where you can work at home, especially if you have a family. It's the pointlessly throwing away a big chunk of your income because you couldn't be bothered with minimal research that won't win you any respect on here. I hope it's not too late.

[ASB]

Your accountant may be able to help.

% of mortgage. Generally a very bad move.
Light/Heaght an appropriately reasonable %
A share of insurance
The running costs of the plane (seriously, flying hourse should be chargeable provided the clients office is a temporary workplace).

[BoredBloke]

"As for the "gold envelope" fellow...you may not find my name inside there my friend...what's your daily/weekly/monthly commuting time ? Got kids, are you working away from home ?"

And what is your take home pay (percentage). Obviously the IR are going to say you are caught, even though you do not fit anything like the IR35 requirements. At least you can console yourself that the massive percentage you are handing over will be wisely spent on all those 'hard working' families which New Labour likes to help so much. What is even better is your 'deemed employee' does not even have to provide you with the little things in life like a desk, chair, heating and power as you are providing all of this. Are you providing your own kit also?

Had you actually researched things a little you would have seen the tiny win percentage the IR have when it comes to IR35 disputes.

[dmini]

Talk to Bauer & Cottrell. My advice as well. I did on one of mine that I believed was a fail, and was told it was borderline but PASS as outside IR35. You can then get insurance that covers everything, including any tax should HMRC challenge AND win. If you speak to them they are very helpful. The guy I spoke to had experience of my agency, knew what he was talking about, told me where I probably stood, and that was before I had even sent him my contract. They then reviewed & gave back a good answer. The advantage of them for lazy people like me, is that they will if needed negotiate with the agency to put your contract where it needs to be

[tim123]

No it doesn't.

I answered it.

Yes, you can claim your travelling expenses.

tim

[Lockhouse]

Assuming I'm inside IR35, can I still legitimately claim the travel costs and home working expenses (% of mortgage, light,heat, broadband) as business expenses....

No. AIUI you can claim 5% in total expenses and that's your lot.

[seventieskid]

Thanks for all the constructive and not so constructive comments.

The crux of my question remains unanswered though.

Assuming I'm inside IR35, can I still legitimately claim the travel costs and home working expenses (% of mortgage, light,heat, broadband) as business expenses....

As for the "gold envelope" fellow...you may not find my name inside there my friend...what's your daily/weekly/monthly commuting time ? Got kids, are you working away from home ?

[triboix]

It's just that some insurances are invalidated because when you take some insurance you must genuinely believe you are outside IR35 (cough). Submitting your contract to a review by the IR could be seen to refute that point of view, whilst having a specialist negotiate changes on your behalf could be seen to reinforce it.

Always get you contract reviewed by a specialist, not HMRC.

Good to know. Anyway, I wouldn't give my contract to HMRC without them asking for it!

[Lockhouse]

I was not aware of that! What is the reason for it?

It's just that some insurances are invalidated because when you take some insurance you must genuinely believe you are outside IR35 (cough). Submitting your contract to a review by the IR could be seen to refute that point of view, whilst having a specialist negotiate changes on your behalf could be seen to reinforce it.

Always get you contract reviewed by a specialist, not HMRC.

[triboix]

If you're working off site, how can there be any direction and control and how can it be a requirement for personal service as the client doesn't know who'll be performing the work? Get a proper contract review from Bauer & Cottrell and start again.

It's more likely for hell to freeze over than for HMRC to declare a contract outside.

Yeah, do not expect HMRC to be fair only because it's a goverment body!

Also by asking for an opinion from HMRC it is possible that you invalidate any IR35 insurance you may take out in the future.

I was not aware of that! What is the reason for it?

[DimPrawn]

I submitted my 'situation' and contract for review by the IR, no suprise it came back within IR35.

Winner of the CUK most stupid IT contractor award 2006 goes to.....(opens gold envelope)...seventieskid...

[Lockhouse]

If you're working off site, how can there be any direction and control and how can it be a requirement for personal service as the client doesn't know who'll be performing the work? Get a proper contract review from Bauer & Cottrell and start again.

It's more likely for hell to freeze over than for HMRC to declare a contract outside. Also by asking for an opinion from HMRC it is possible that you invalidate any IR35 insurance you may take out in the future.

[maverick]

I submitted my 'situation' and contract for review by the IR, no suprise it came back within IR35.

What reasons did they say your contract is inside IR35?

[Pondlife]

I submitted my 'situation' and contract for review by the IR, no suprise it came back within IR35.

D'oh

Lesson learnt then?