Question about IR35

**Greg@CapitalCity** · 13 March 2012, 20:56

Hi Nikki,

I don't think it would do any harm. The main point you need to remember is that you are in business of your own account. Contractors who genuinely run a business (as opposed to being a disguised employee who happens to use a ltd company) will always be in a strong IR35 position.

With regards to your situation, you will still want to cover off the IR35 basics. Have a good 'IR35 compliant' contract in place, and base your actual working conditions on being an independent contractor (as opposed to a disguised employee).

The improvements and promotion of your website would be, in my opinion, minor when considering your overall IR35 status.

**northernladuk** · 13 March 2012, 21:16

Two threads in as many minutes on IR35??

Have you read the guides on the right hand side. They would answer your question and give you a better understanding of all the issues you haven't thought of yet.

**LisaContractorUmbrella** · 14 March 2012, 08:30

Originally posted by nikki View Post

Good evening!

I opened my own limited company and am going to sign a contract to work as a software engineer in a trading company in London.

I would like to ask if the following would contribute to myself being treated as inside IR35.

I developed a website which is called same as my company and whilst working as full-time contractor in a trading company, I am going to also work on improving and promoting my website (in evenings, weekends). I am going to hire (part-time) web designer, software developer and software tester for my website.

So if I hire these people (or use outsourcing) - would it benefit to treating me in my full-time work at the trading company as IR35 compliant?

Thanks in advance,
Nikki

From HMR&C's point of view I think the fact that you work in the evenings on your website would have little or no bearing on your IR35 status during the day as it sounds as though the two activities would be mutually exclusive. If you had the freedom to work on your website whilst you were working on contract e.g. to talk to developers during the day then it may have more of an impact but if you don't have that one really has no bearing on the other

**Qdos Contractor** · 14 March 2012, 12:37

It's obviously something that adds to your argument that you are in business on your own account, which is good. However, it's not going to override any of the facts of your main contract. If your working practices/contract are negative you'll still have a problem.

So it's certainly beneficial, but by no means a golden bullet.

If you can get the people you hire to work on your main contract as well then it's a different matter...

**dimazigel** · 15 March 2012, 23:49

I agree, until you can say to your client that "today I'm busy and I'll send my developer to you instead of myself", you are inside IR35

**JamJarST** · 16 March 2012, 10:02

Originally posted by dimazigel View Post

I agree, until you can say to your client that "today I'm busy and I'll send my developer to you instead of myself", you are inside IR35

Rubbish, the right of substitution is not the be all and end all of IR35 you know. What about MOO and working practices?

**northernladuk** · 16 March 2012, 10:44

Originally posted by dimazigel View Post

I agree, until you can say to your client that "today I'm busy and I'll send my developer to you instead of myself", you are inside IR35

And double rubbish, substitution isn't for doing this. Even people like Accenture for example who are clearly businesses in their own right can't do this to a client.

The person you send has to have a pass, a log in, knowledge of the project. No way can you get a guy in to do one piece of work. Sub is to be used if you leave, not to fill in for a day.

Question about IR35