Finally published; it has been confirmed, as we suspected, that contractors working through their own limited company and fall inside IR35 will not be outside the scope of the legislation:
Example characteristics that demonstrate you are not in scope
3 An organisation contracts out the management of its canteen. The contractor
manages the entire operation of the canteen and is responsible for the direction
and control of its own catering staff. Although they are working on the
customer’s premises, the contractor’s workers are not agency workers because
they are not subject to direction and control by the customer.
3 An individual is works in organisation A, but is on secondment to organisation
B, who pays the individual until they return to the original organisation A when
the secondment ends. Organisation A is not acting as a TWA as it does not
fulfil all the requirements of a TWA given it’s main activity is not the supply of
workers.
3 An individual works for an internal project team and is paid directly by his
employer, covering a variety of temporary posts dependent on where he is
needed. The individual is not in scope.
3 Where a single legal entity recruits temporary staff directly who work for the
same legal entity they not in scope.
3 An individual has set up his own limited company through which he provides
IT services. He is engaged by a TWA and supplied to work on a specific project
with an anticipated duration of 12 months. The individual has no fixed working
pattern and can determine how and when he performs the services; he can also
send a substitute to perform the services at any time or payment is made on
specific deliverable or on a fixed price and not simply on an hour, daily or
weekly rate. However, he is subject to the hirer’s reasonable and lawful
instructions. Given the absence of personal service and mutuality of obligation,
the company is a client or customer of the individual, therefore the individual is
out of scope. This must be a true reflection of the reality of the relationships
between the parties involved and not simply a reflection of the contractual terms
Example characteristics that demonstrate you are not in scope
3 An organisation contracts out the management of its canteen. The contractor
manages the entire operation of the canteen and is responsible for the direction
and control of its own catering staff. Although they are working on the
customer’s premises, the contractor’s workers are not agency workers because
they are not subject to direction and control by the customer.
3 An individual is works in organisation A, but is on secondment to organisation
B, who pays the individual until they return to the original organisation A when
the secondment ends. Organisation A is not acting as a TWA as it does not
fulfil all the requirements of a TWA given it’s main activity is not the supply of
workers.
3 An individual works for an internal project team and is paid directly by his
employer, covering a variety of temporary posts dependent on where he is
needed. The individual is not in scope.
3 Where a single legal entity recruits temporary staff directly who work for the
same legal entity they not in scope.
3 An individual has set up his own limited company through which he provides
IT services. He is engaged by a TWA and supplied to work on a specific project
with an anticipated duration of 12 months. The individual has no fixed working
pattern and can determine how and when he performs the services; he can also
send a substitute to perform the services at any time or payment is made on
specific deliverable or on a fixed price and not simply on an hour, daily or
weekly rate. However, he is subject to the hirer’s reasonable and lawful
instructions. Given the absence of personal service and mutuality of obligation,
the company is a client or customer of the individual, therefore the individual is
out of scope. This must be a true reflection of the reality of the relationships
between the parties involved and not simply a reflection of the contractual terms
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