IR35: Part and parcel of the organisation
'Part and Parcel' of the organisation considers whether the contractor has now become integrated into the client company from an IR35 point of view. Does the contractor work infrequently and only work for the client when work is available? If we look back at Mutuality of Obligation and the Carmichael case it was made clear that the Power Company was under no obligation to provide any work to the women. Where the client provides regular work to the contractor especially on a rolling contract it can give the impression that the contractor is really a disguised employee -- and, like an employee, is 'part and parcel' of the organisation.
Examples are known where contractors:
- Have their own car park space in the executive car park;
- Have business cards in the name of the client;
- Wear the company uniform (Tanton case);
- Are provided with a company car or company van (Tanton case);
- Have their own desk/workstation or even separate office at the client;
- Appear in the client's internal telephone directory;
- Appear on the client's website and have their own e-mail address; and
- Attend team-bonding sessions provided by the client
It is surprising that after a number of contracts, rather than reviewing the working practices of new contracts to see if any of the conditions have changed, it is assumed that the contractor is still using a Contract for Services (self-employment). By using a Rolling Contract, the contractor could be giving his services exclusively to one client which could give the impression there is a Contract of Services.
By former tax inspector Ray McMahon.
Editor's Note: Further Reading on 'Part and Parcel' -