Originally posted by NFH
View Post
Services are delivered by people. Section 49(1)(a) is not distinguishing between people and automatons. It is identifying a situation where a worker performs work or is obliged to perform work. What the worker's written contract says and how many intermediaries are interposed between the worker and the end client and who they are is nothing more than window dressing. The legislation is invariant to written contractual terms. The contract could mention you-person or it could not mention you-person, ever. That is totally irrelevant w/r to Section 49(1)(a). If YourCo-person actually does work or is obliged to do work, rather than YourCo automaton, then YourCo-person satisfies Section 49(1)(a). The YourCo contract that never mentions a person but involves work that is delivered by people satisfies Section 49(1)(a) for each person.
A big-three consultant working on a client site is a worker doing work. Likewise, a PSC director performing work remotely for a client is a worker doing work. Likewise a YourCo employee working for a client is a worker doing work. IR35 is not limited to things like "directors of PSCs". It isn't even limited to companies.
The nature of that work comes second. You are leaping ahead to the second thing before you've even understood the first thing. The first thing is concerned with workers doing work.
The second thing is the nature of how that work is delivered. What does the hypothetical contract look like? The hypothetical contract is Section 49(1)(c). Does it look like a contract of service or a contract for services? If it's a contract for services, then there is no personal service, but the service is still delivered by a person.
That's the last thing I'll say. Perhaps stick to running your company rather than armchair lawyering. I mean, really, you think that legislation announced and implemented twenty years ago was written by noddy and no one has noticed that yet?
Leave a comment: