Working on-site regularly for one client seems to have raised the question about being employed rather than self employed. There are various stipulations regarding self employment in the IR35 rules but there are 2 things bothering me and I wondered if anyone has an answer:
1 If I use my client's PC does that indicate that I am not using my own equipment thereby not 'providing the main items of equipment I need to do my job' (as per HMRC website)?
2 I am a one woman band so don't have a 'colleague' to send in to do my job if I am unable to attend but would hiring from an agency, if necessary, cover this point?
I'm getting a bit worried about this so any help would be great. Thanks
How do I get my post into the right Forum? I am new to this
Welcome Firefly.
I wouldn't worry too much about the forum you post in if you post in the wrong one by accident. Most people I think click on the recent posts link and don't really notice the forum it is in.
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Never buy black socks from a normal shop. They shaft you every time.
IR35 relates to companies, so if you are self employed it shouldn't be a problem for you, however it is possible (but unlikely) that hmrc may deem you employed rather than self employed but it would be your client who would be liable for any underpayment of tax/ni.
If it makes you feel any better IR35 was brought in mainly to stop contractors getting away with tax by being a separate limited company, when in reality, many were really simply working for the company. This affected a lot of IT professionals at the time.
Luckily for the humble bookkeeper, you will rarely find yourself signing a 6 month or 1 year contract, so I would be amazed if you had any problems with this.
However, if they were your only client, then.... HMRC would probably have a very good case against you.
I know this feels counter-intuitive, but give HMRC a call and ask them for advice. I call them regularly and they are incredibly helpful (providing you don't shout at them ;)
It is good that you use your own workstation when doing your work as you are assured of the privacy of your intellectual property. Even when you are working on-site, you should ensure that your work is protected. When you have your work with you, you will be able to review your work and you are sure that they will not be editing them once you are gone.
I can see the point that you were going for in your reply but in this instance I think that you misunderstand the angle that this thread is coming from.
In the UK there is something called IR35 legislation which HMRC use in order to treat small companies as individuals in order to extract greater tax revenue if you do not pass certain tests. Actually I personally think that it was brought in by our last Government purely to attempt to blugeon the entrepeneurial spitit out of those trying to better themselves.
There was hope that when we got the new Government last year that we would get one that was more entrepeneur freindy and get rid of things like the IR35 legislation which refused to recognise that there should be rewards based on the risks taken.
What we actually got was no changes to serious things like IR35 but we do have the promise of free first year internet access for new start companies! (I think that the Government were actually expecting parties in the streets on the back of that one!!!).
Anyway, use of own equipment is one of the tests as to whether one is employed or not which is what Firefly was implying in her initial posting.
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
