Reply to: Will LinkedIn recommendation affect my IR35 status?

[Fred Bloggs]

Thought it was in place now?

Yes it is, but @ 7.5% it is only partially an IR35 replacement. When the divi tax is equivalent to NIC's then IR35 becomes redundant and can be repealed. At a stroke a whole industry disappears too, IPSE, QDOS, and others all will become irrelevant.

[northernladuk]

Thought it was in place now?

[northernladuk]

Did you talk about the weather in the staff kitchen too ? in fact did you use any of the staff facilities on site then im sorry but in order to KEEP out side of IR35 and keep your status as a real independent contractor you can not engage in any activity that permanent works would normally do or use any on site facilities ie hold it till your off site do not use the staff toilets! and always have one of the permanent members of staff make you a coffee, make it clear that you can not under any terms can make your own coffee using staff facilities as it would affect your TAX status ! make that bit well known to all of your so called "colleague".

You need to keep clear line between them and you, you are different from them you are not just one of the team you ARE independent its a hard life but that's the way it has to be purely for tax purposes.

ps act like that and no one would ever use the words "respected colleague" again to describe you.

Erm......

[Unix]

Indeed, it might be delayed till after the next election but dividend tax will have the effect so desired for IR35 pretty soon.

Thought it was in place now?

[northernladuk]

I think the dividend tax is the replacement.

Hmm. I hope not. Guess we are going to have to wait and see.

so desired for IR35 pretty soon

Yeah but that desire is so badly misplaced it's the wrong tool for the wrong desire.... They want us all to be inside. This simply isn't the case so a one size captures everyone simply can't be the solution.

[Fred Bloggs]

I think the dividend tax is the replacement.

Indeed, it might be delayed till after the next election but dividend tax will have the effect so desired for IR35 pretty soon.

[LondonManc]

I think the dividend tax is the replacement.

I can imagine dividend tax increasing as a balance to them conceding on the T&S expenses side of things.

[Unix]

For now....

I think the dividend tax is the replacement.

[sharky]

I am an independent contractor working through a limited company and have recently completed a contract for a client.
One of the client's employees has kindly written a recommendation for me on LinkedIn. The recommendation is very complimentary but it refers to me as a "respected colleague" which concerns me. Could this affect my status as an independent contractor working outside of IR35?

Did you talk about the weather in the staff kitchen too ? in fact did you use any of the staff facilities on site then im sorry but in order to KEEP out side of IR35 and keep your status as a real independent contractor you can not engage in any activity that permanent works would normally do or use any on site facilities ie hold it till your off site do not use the staff toilets! and always have one of the permanent members of staff make you a coffee, make it clear that you can not under any terms can make your own coffee using staff facilities as it would affect your TAX status ! make that bit well known to all of your so called "colleague".

You need to keep clear line between them and you, you are different from them you are not just one of the team you ARE independent its a hard life but that's the way it has to be purely for tax purposes.

ps act like that and no one would ever use the words "respected colleague" again to describe you.

[northernladuk]

IR35 is dead, forget about it.

For now....

[LondonManc]

A former colleague of mine joined a consultancy as a contractor, his expertise was a niche' area which the consultancy wanted to expand into. The company put out a press release welcoming him and their aim to expand further into this area. The contractor was given business card and the title of xxx manager. The contractor also put this on his Linked-in page. Made him look part and parcel of the organisation.

Couple years later, he was investigated for IR35, HMRC had copies of his liked-in page, consultancy press release, even his business card. Luckily his working practices were good and consultancy onside. Had IPSE+ membership, even than the investigation took more than 3 years to close.

Surprisingly HMRC were fixated on what they found on social media rather than working practices. So be careful what you put on lined-in etc.

If you've got business cards saying that you're part and parcel and press releases not being clear (there not going to say that you're a temporary asset, are they?) then you're going to be considered "low hanging fruit".

The key test for me in that situation - would clients of the consultancy know him as a third party contractor/expert or as "manager at consulting co"?

[Unix]

I am an independent contractor working through a limited company and have recently completed a contract for a client.
One of the client's employees has kindly written a recommendation for me on LinkedIn. The recommendation is very complimentary but it refers to me as a "respected colleague" which concerns me. Could this affect my status as an independent contractor working outside of IR35?

IR35 is dead, forget about it.

[northernladuk]

Sounds like a classic case of Hector clutching at straws to me. If you have one of the three IR35 case law proven get outs, then Hector is stuffed.

Dunno about that... If it's 'Made him look part and parcel of the organisation.' then it's well worth a sniff surely. They've got to investigate someone so this would be a bloody good place to start IMO.

They partial win they had was on part and parcel situation so they've history here, granted they've an even longer history of losing but still..... It also lasted 3 years so it can't have been a cut and dried case. Classic case of Hector clutching straws? I'd say not. I'd have been very interested in the detail of this to see exactly what arguments were the key ones. Remember in one case the judge threw RoS out as a sham so could have been down to two outs, and you know my opinion on only having that as a defence.

[Fred Bloggs]

Sounds like a classic case of Hector clutching at straws to me. If you have one of the three IR35 case law proven get outs, then Hector is stuffed.

[eazy]

Not in this case!

A former colleague of mine joined a consultancy as a contractor, his expertise was a niche' area which the consultancy wanted to expand into. The company put out a press release welcoming him and their aim to expand further into this area. The contractor was given business card and the title of xxx manager. The contractor also put this on his Linked-in page. Made him look part and parcel of the organisation.

Couple years later, he was investigated for IR35, HMRC had copies of his liked-in page, consultancy press release, even his business card. Luckily his working practices were good and consultancy onside. Had IPSE+ membership, even than the investigation took more than 3 years to close.

Surprisingly HMRC were fixated on what they found on social media rather than working practices. So be careful what you put on lined-in etc.