ClientCo perks - can a contractor accept them?

[matty]

Hi all,

Intrigued by this as can't seem to find info. I've seen a ClientCo contract job ad that mentions some benefits - examples being free parking, free gym, and discount on their retail products (it's a brand that has high street shops).

Now parking and gym I guess seem reasonable if they are facilities that are free to use at the premises and not taxable benefits to permies. So presume reasonable those facilities could be used as a contractor?

But what about the 'staff discount' scenario? Would you have to declare that to taxman in some way? Or just not use at all?

What would IR35 think about that?

Thanks for any advice! If there is an answer out there please feel free to just point to it

[northernladuk]

These are employee perks. To use them would indictate you are an employee. This is bad.

If it's open to anyone at client site regardless of relationship to the client it's not so bad.

Check number 10 out...

ir35_top_10_traps_catch_unwary_contractor

IMO don't think I've ever seen a gig advertised with attractive benefits associated with it. I'd be very wary about this one from the outset. Something doesn't smell right.

[matty]

Ok good, my instinct was right I thought it seemed odd in particular the store discount.

Cheers!

[mudskipper]

Depends - some companies also offer supplier discounts.

[WTFH]

ClientCo perks - can a contractor accept them?

If it's access to a shop on the premises, I'd not be too worried, if it was a "staff discount card" that you could use in one of their high street shops, then that smells too much of employee. But it also raise alarm bells if it's mentioned as part of the contract advert.

A former client of mine are a manufacturer/wholesaler but no direct sales to customers. They had a shop on site which was only open on one day a week for 2 hours (canteen staff manned it). During those 2 hours anyone on the site could shop there. If you were an employee it was logged against your employee number and taken out of your salary. If you were a contractor/visitor/guest, you had to pay cash. It was not mentioned to me by the agent and I only found out about the shop a few months after starting.

[matty]

I have a feeling they just don't 'get' contracting if I'm honest - I think they've copy pasted their standard job ad template which includes their normal employee perks.

If you went for the job, would you need to do something specific to avoid ir35 like have them write a new version or put something in the contract to exclude those benefits? Or would simply not using them be good enough? Is the expectation on me to be able to prove I *haven't* used them? (Which seems like it would be difficult to do!).

Also, does this extend as far as things like coffee etc in the office? My observation of contractors in my current place is they seem quite happy using facilities, helping themselves to fruit the company provides etc. I'm assuming technically speaking this stuff should be avoided, although also presumably pretty difficult for anyone to prove either way...?

[WTFH]

Matty are things like fruit/coffee provided for visitors as well as employees? If an external person turns up for a meeting are they allowed access to the coffee etc, if so then it is not an employee perk

[SueEllen]

@Matty often the agent will copy and paste a job spec into the ad. If you then interact with the company they will treat you differently.

[matty]

Matty are things like fruit/coffee provided for visitors as well as employees? If an external person turns up for a meeting are they allowed access to the coffee etc, if so then it is not an employee perk

Ahh yes of course makes sense. Cheers!

[LisaContractorUmbrella]

Only thing I would say - if you do go for the contract then educate the client on what it means to be a contractor - if HMRC come calling they will question the client as to whether they considered you to be part and parcel of the organisation and if 'employee perks' are mentioned you could be up a certain creek without a certain paddle.