Reply to: IR35 Question

[AnthonyQuinn]

Thanks a Lot

Thanks a lot for your help. great to avoid the sharks and get good advice here.

[Qdos Contractor]

If he is currently inside IR35 wrt this contract, doing something else with the rest of the week isn't going to magically change this.

Correct.

[Qdos Contractor]

And you base this on what? Time and time again the point has been made that each contract is evaluated in isolation and that multiple clients have no effect whatsoever.

The contract is evaluated in isolation, but this also encompasses the contractor's business practices during the period of the agreement in question.

Concurrent contracts will definitely have an impact in an enquiry. It's not as pivotal an issue as substitution or control, but it is clearly indicative of a genuine business.

That is based on 1000+ successful IR35 enquiries.

[deckster]

I think that the key word there is concurrent - if you are working the same 3 days a week with company A, then two days with B every week, then I don't think you'd be able to argue the difference between being a business and being an employee with two jobs (like firemen, for example).

Thankyou. The OP has already said

"My 3 days a week are very much 'Employee' like with reasonable working hours expectations and working to the client's specific requirements."

If he is currently inside IR35 wrt this contract, doing something else with the rest of the week isn't going to magically change this.

[TheFaQQer]

This is not correct. Multiple concurrent clients goes a long way to displaying that one is "in business on ones own account" i.e. not an employee.

I think that the key word there is concurrent - if you are working the same 3 days a week with company A, then two days with B every week, then I don't think you'd be able to argue the difference between being a business and being an employee with two jobs (like firemen, for example).

If, however, you can flit between the two whenever you need to, then you are in a much better position to argue that it's a business rather than employee.

[Gonzo]

I don't understand how the OP intends to pay themselves.

If they are billing through this company that they only own 50% of the shares of, then as far as I can see the only options are to pay salary which would be subject to all the same taxes as using the umbrella, or pay themselves dividends - 50% of which will have to go to the other shareholder(s).

How would they be any better off?

[Pacciae]

Qudos are on these boards and are well qualified to handle investigation and give advice on these matters

[rootsnall]

This is not correct. Multiple concurrent clients goes a long way to displaying that one is "in business on ones own account" i.e. not an employee.

WHS

Is there an example of somebody getting 'done' who had concurrent contracts, I doubt it but ?

[Archangel]

And you base this on what? Time and time again the point has been made that each contract is evaluated in isolation and that multiple clients have no effect whatsoever.

This is not correct. Multiple concurrent clients goes a long way to displaying that one is "in business on ones own account" i.e. not an employee.

[deckster]

But running two contracts simultaneously would surely have some bearing on things.

And you base this on what? Time and time again the point has been made that each contract is evaluated in isolation and that multiple clients have no effect whatsoever.

[rootsnall]

IR35 is evaluated on a contract by contract basis. So if your current one is inside then the deemed income from that one will be treated as such.

But running two contracts simultaneously would surely have some bearing on things.

I'd just put the lot through a Ltd, join the PCG scheme or similar and cross your fingers like the rest of us.

[LisaContractorUmbrella]

Having more than one client will only count in your favour if you can work at each of the clients' sites at times of your chosing and could, for instance, leave one site if there was an emergency at the other. If this is not the case then both contracts will be evaluated individually.

[chicane]

Your working arrangements with your 3 day a week client may well be trumped by the multiple simultaneous clients factor since you work for a second client 2 days a week as well.

The "multiple simultaneous clients" scenario seems to be regularly quoted on CUK as a viable IR35 defence. I certainly wouldn't want to rely on it.

[DaveB]

Your working arrangements with your 3 day a week client may well be trumped by the multiple simultaneous clients factor since you work for a second client 2 days a week as well.

I'd get it all checked out professionally but you may well be able to land yourself outside IR35 with this one.

[Pondlife]

IR35 is evaluated on a contract by contract basis. So if your current one is inside then the deemed income from that one will be treated as such.