Multiple roles at same client - IR35? Multiple roles at same client - IR35?
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  1. #1

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    Default Multiple roles at same client - IR35?

    Hi all,

    Have asked my accountant about this and the client, but am not sure if I'm getting the right advice.

    Please see below the timelines of my contracts for the past 2 years for context (Note: my client is ClientX (private ltd) and SubClientY (government dept) are a client of ClientX):

    17 months: Role1 at ClientX (Role2 secured during this time)
    2 weeks: Out of contract
    12 months (until contract end date): Role1 at ClientX (new contract and new rate - same location, with occasional travel to SubClientY)

    During the first contract, once I was aware that my new contract would take me beyond 24 months at the same client, I stopped claiming travel expenses and subsistence. Now I only claim for travel subsistence when there is business related travel that is more than my cost to travel to ClientX's site. This was as advised by my accountant.

    As I have now completed more than 2 years at ClientX over 2 contracts, I just wanted to check that I am not caught under IR35. ClientX has also confirmed that both contracts are not IR35. However, the 2 years just concerns me. Am I caught within IR35 due to the length of time with the same client (regardless of the gap and of a new contract with a different role)?

    Accountant is happy that as long as the client has said the contract (referring to both) is not caught by IR35, then I am fine; but they did caveat it with that it would be a good idea to get insurance if HMRC investigate. Accountant also said that length of time can be seen as being under IR35.

    Thanks in advance
    Last edited by bazinga; 22nd January 2018 at 09:37. Reason: further clarity on timelines

  2. #2

    More time posting than coding


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    Too complex to go into on an internet forum, but what I will say is 2 years has absolutely nothing to do with IR35.

  3. #3

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    Quote Originally Posted by craigy1874 View Post
    Too complex to go into on an internet forum, but what I will say is 2 years has absolutely nothing to do with IR35.
    Correct - length of time (in itself) is no indicator of IR35 status.
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  4. #4

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    You really need a better understanding of IR35.....
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  5. #5

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    Quote Originally Posted by TheFaQQer View Post
    Correct - length of time (in itself) is no indicator of IR35 status.
    And nor is the client’s way-so. You must determine this yourself, from the contract (use legal advice where necessary) and in working practises.

  6. #6

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    Quote Originally Posted by bazinga View Post
    Accountant also said that length of time can be seen as being under IR35.
    Ask the accountant to show you a case where the length of time at the client has been a deciding factor in any IR35 case.

    That's not to say that a long contract doesn't mean that you (and the client) won't start to see yourself as being part and parcel of the organisation, which might then lead to MOO or a refusal to accept a valid substitute, but there is nothing that indicates that just having a long contract (and 2 years may or may not be long depending on the work that you do) has any factor on IR35 at all.
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  7. #7

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    Quote Originally Posted by PerfectStorm View Post
    And nor is the client’s way-so. You must determine this yourself, from the contract (use legal advice where necessary) and in working practises.
    Thanks. That's what I am trying to do.

    With regards to working practices, I have read up on this a bit and can say that I do not behave like an employee where I do not need to ask permission to take holidays or work remotely. I'm sure there are a lot more factors that are taken into consideration, but for me this should summarise how I operate as a starter for 10.

  8. #8

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    Quote Originally Posted by bazinga View Post
    (Note: my client is ClientX (private ltd) and SubClientY (government dept) are a client of ClientX):
    It's not entirely clear from what you've said here, but if the public sector IR35 rules apply, SubClientY is responsible for making the IR35 determination, and if they've told ClientX that you are outside, I don't think you've got a thing to worry about.

    And the 24 months certainly is nothing to worry about, even more so since it is a new role and there was an interlude (albeit brief) between them. When employees get reassigned, they don't usually go two weeks unpaid between roles. That doesn't prove you are outside IR35, but it should effectively answer any claim that being there a long time has made you part and parcel.

    You might think twice about extending again after this contract, you start to run to 5-6 years and HMRC may well convince themselves you are an employee and go digging for lots of ways to prove it. I don't think I'd feel comfortable with anything that long-term.

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