Oh yes, how to spend £1,200 on advertising...

[speling bee]

If £1200 is spent on advertising, it may well be a sham for the IR35 tax investigation. But this is about the Business Entity Tests, which have no status in tax law. Sham or no sham:

Evidence
 Copy of advertisement(s) placed
 Copy of invoice(s)

Having said that, it's an expensive way to get 2 points and there are other combinations that will take you to 21 more cheaply.

[Kugel]

Go faster advertising stripes for £1,200? OR Tax Liability Cover (TLC35) from QDOS that covers IR35 tax/NIC liabilities up to £100,000 for £660 per year?

Hmm, that is hard choice.

[captainham]

It's definitely not just B2C stuff on wraps. I've been having a look around for ideas and I've seen everyone from Commercial Solicitors, Office Supplies, IT Services and Networking providers with wraps. Also some trade specific stuff, i.e something that a consumer would never expect to buy from... like Traffic management consultants, commercial letting agents, leisure industry suppliers etc.

These all sound like 'proper' businesses to me, i.e., not one-man bands who get 98% of their business from Jobserve/agents and the other 2% direct with clients they've worked with before. Or to put it another way, businesses with a genuine need to advertise as that is a large source of income for them.

I don't think you're being realistic; if you're a client manager in need of a contractor, are you seriously going to bypass emailing your recruitment agency and getting them on the case, and instead jot down the number of a bloke whose wrapped TT you were sitting behind at the lights the other day? I know which I'd choose...

And no offence but I've laughed at contractors before who turn up at client site in their 911 Turbos (tinged with jealousy I admit, but an ill thought-out perception to give in my opinion); if I saw one turn up in a wrapped TT, I fear I may soil myself...although you're right on one aspect, I'd remember the guy/company, but for all the wrong reasons IMO.

[northernladuk]

I'd have thought a nice TT in the car park will get their attention, especially if it's liveried up. They might not remember it if they see it once, but parked there everyday for 3-6 months, they'd have my company name in their head, so if they want me back they won't need an agent to find me, I already have the website with my contact details.

You are right, it would get their attention and get them wondering why you have come to work in your wifes car... or if you mean liveried up like a sports car they would think 'what a ******'

There's even companies who will pay you to advertise on your private car (assuming it's something not tulip).

If you don't mind your everyday car looking like a taxi for a few hundred quid a year advertising a hairdressers.

If you think about it - it's quite an effective campaign in value for money to reach your target audience.

I am thinking about it and all I can think of is how stupid this idea is.

Now I've got to work out if its sensible to lease a TT through the business. It usually isn't - but last time I checked was over a year ago.

It most certainly isn't worth doing. Been discussed in a number of threads. It is available for personal use so BIK is incurred and other clever accountancy stuff I don't really understand.

[IR35FanClub]

Because everything you have mentioned in B2C so the average man on the street may be interested in the services. Contractors (assuming the OP is mainstream) is B2B via contract for specialised pieces of work. You are right you have to spend the money wisely, and I can't see how putting a wrap on your car advertising yourself is wisely. You are right about the bold claims but you can't just throw common sense and business sense out of the window either. If it works for business it will pass the test, if it is a poorly thought out plan to get extra points on the test it will fail.

It's definitely not just B2C stuff on wraps. I've been having a look around for ideas and I've seen everyone from Commercial Solicitors, Office Supplies, IT Services and Networking providers with wraps. Also some trade specific stuff, i.e something that a consumer would never expect to buy from... like Traffic management consultants, commercial letting agents, leisure industry suppliers etc.

Back to my original point - what is the best way to reach people in the type of companies I work for? Those with large IT departments and lots of staff? I don't have the budget to pay for targeted mailings, or google ads on sites that "Middle management IT bosses" hang out on, even if there is such a target group. I'd have thought a nice TT in the car park will get their attention, especially if it's liveried up. They might not remember it if they see it once, but parked there everyday for 3-6 months, they'd have my company name in their head, so if they want me back they won't need an agent to find me, I already have the website with my contact details.

There's even companies who will pay you to advertise on your private car (assuming it's something not tulip).

If you think about it - it's quite an effective campaign in value for money to reach your target audience.

Now I've got to work out if its sensible to lease a TT through the business. It usually isn't - but last time I checked was over a year ago.

[northernladuk]

More reasons this thread should be in General.

[IR35FanClub]

And what evidence do you have to backup this statement? I have seen vans with "PC repairs" graphics on the side. If you run a website and want extra traffic then it is not such a bad idea. There is a fine line with all these things. The tests say you have to have spent the money, not that is must be spent wisely. Are they going to start saying, "oh that's a silly magazine to put an advert in, you should have done it here instead"? You may prove to be right but I don't think you are qualified to be making such bold claims at this point in time, before these tests have been used in meaningful numbers.

Exactly - at least I'll be able to provide evidence I have indeed spent the money on a vehicle wrap bearing my company name and a description of the services. I can't understand why boy racers go round giving free advertising space to motorspares suppliers on their cars. Best to advertise yourself. To be honest although it will be a wrap - I also want it to reflect quality and environmental efficiency (on a 3.2V6?). Somehow the designer will have to work that out from my brief.

Something like this is what I had in mind ;-)

Audi reveals the new R18 e-tron quattro

[northernladuk]

And what evidence do you have to backup this statement? I have seen vans with "PC repairs" graphics on the side. If you run a website and want extra traffic then it is not such a bad idea. There is a fine line with all these things. The tests say you have to have spent the money, not that is must be spent wisely. Are they going to start saying, "oh that's a silly magazine to put an advert in, you should have done it here instead"? You may prove to be right but I don't think you are qualified to be making such bold claims at this point in time, before these tests have been used in meaningful numbers.

Because everything you have mentioned in B2C so the average man on the street may be interested in the services. Contractors (assuming the OP is mainstream) is B2B via contract for specialised pieces of work. You are right you have to spend the money wisely, and I can't see how putting a wrap on your car advertising yourself is wisely. You are right about the bold claims but you can't just throw common sense and business sense out of the window either. If it works for business it will pass the test, if it is a poorly thought out plan to get extra points on the test it will fail.

[centurian]

And what evidence do you have to backup this statement?

The fact that many legal judgements in IR35 cases have thrown out sham clauses/actions. RoS is the biggest example.

But this isn't even a court matter anyway. The business entity tests are not part of any law. The business entity tests were designed for companies to assess themselves for IR35 risk - fiddling the answers means you only kid yourself.

HMRC do use them as a shortcut filtering mechanism for HMRC so that they can target cases more effectively. A status inspector can choose to ignore any aspect of a business entity test and conduct a full status review anyway, at which point the real IR35 legislation comes into force - and spending £1,200 on advertising isn't mentioned anywhere in that.

Realistically, what are their chances of this happening - probably on the low side. But the £1,200 doesn't put you outside IR35, it just reduces the chances that HMRC bother to fight it any further.

[kingcook]

Use the £1200 to bribe the tax man when s/he comes knocking at your door. Simples.

[Lewis]

They will call it a sham and ignore it.

And what evidence do you have to backup this statement? I have seen vans with "PC repairs" graphics on the side. If you run a website and want extra traffic then it is not such a bad idea. There is a fine line with all these things. The tests say you have to have spent the money, not that is must be spent wisely. Are they going to start saying, "oh that's a silly magazine to put an advert in, you should have done it here instead"? You may prove to be right but I don't think you are qualified to be making such bold claims at this point in time, before these tests have been used in meaningful numbers.

[IR35FanClub]

This is a fail as soon as you get the full stop in the title...

If you need advertising you pay for it and this will count as a positive for the business tests...

If you want to throw £1,200 away just to try and prove you advertise you have wasted your time and your money. They will call it a sham and ignore it.

Can we move this to General so we can discuss.....

Doesn't it belong in accounting as its about what I can legitimately spend money on?

I was actually seriously considering it. Even hairdressers advertise on their TT's these days. I cant think of a better way to reach the people who might recruit me than having a mobile advert for my services, all those people in traffic jams and driving past my car in the town centre are potential clients. It's made me realise I need to get a Mk2 not a Mk1 or it will look like I'm not very successful, even though I prefer the old shape :-( I could pay loads for sponsored links or advertising in the local paper and generate no leads. At least this is semi permanent and should last about 4-5 years. Lets face it - IT contracting advertising isn't about generating sales on a website, it's about brand awareness and getting people to remember you.

[BrilloPad]

A salesman I knew used to wear union jack socks to be remembered. Halfway though each pitch he would exclaim "Oh silly me. Look what stupid socks I put on today!".

The danger is that people might think you have extended yourself too far. Like a company that gets a fountain in the lobby.

[northernladuk]

This is a fail as soon as you get the full stop in the title...

If you need advertising you pay for it and this will count as a positive for the business tests...

If you want to throw £1,200 away just to try and prove you advertise you have wasted your time and your money. They will call it a sham and ignore it.

Can we move this to General so we can discuss.....

[IR35FanClub]

This is just some random site I googled by typing £1200 car wrap.

vehicle sign writing | vehicle graphics | van wrap service

I've always fancied getting a TT and wrapping it in a "race car paint scheme". Seems not only is it possible to pay for it out of company expenses (by including my own company logo in the design) it also gives me another 2 points on my business entity test and gets me into the low risk category. What better way to advertise you IT Contracting business - by parking an advert right outside you clients premises where there are lots of project managers and IT resource "consumers".

At least you'll be remembered when they next need your skills. Maybe not for the right reason - but as long as you do a good job at work they'll be saying have you got that blokes phone number who had that awful TT! Think GoCompare! Hmmn. Maybe there's a failure point here... I sent them an email promising never to buy insurance from them because of that annoying opera singer. Seems to have worked as they are seemingly getting ready to ditch him as they keep blowing him up.

The other "fail" is that it's £1,200 a year. So it will need to be redone each year. What a shame. ;-)