IR35 (again ;) ) and the points system

[JonSmile]

Hi all

I was wondering about the exciting (newish) rating system and decided to rank myself to see if the score really stacked up to my outside IR35 view of my life!

I score a massive 12 points, but have a fairly day way to make this 22 points by going and renting an office, which I would then use about once a week when I was not on clients site in UK or abroad.

Now, this is a fairly cheap option to get the 10 points.

The company registered office would remain at home address.

Does anyone think this is just a waste of money or would having real company premises other that the office space at home be a benefit?

It would be beneficial for me as it has a speedier broadband connection, my own secretary, etc. (about 15/20 small office based companies live in one site).

Thoughts please - as always I expect high quality ones!!

Cheers

[northernladuk]

Waste of money, particularly if it isn't going to be the registered office. HMRC will see straight through it.

Having it in as a question is one thing. Fudging it just for points is another. They are not stupid and know everyone will try it.

[LisaContractorUmbrella]

Agree with NLUK - even HMR&C would see through this and they're not that bright

[Safe Collections]

Interesting question and we have wondered the same thing. Provided the "office" is legitimate and the contractor does actually work in/on the the premises surely this counts?

It's not like hiring a glorified cupboard just as a mail delivery address?

Frankly given the mess the IR35 legislation is in we are glad we aren't contractors...

[northernladuk]

Interesting question and we have wondered the same thing. Provided the "office" is legitimate and the contractor does actually work in/on the the premises surely this counts?

It's not like hiring a glorified cupboard just as a mail delivery address?

Frankly given the mess the IR35 legislation is in we are glad we aren't contractors...

But it is not legitimate. If it was they would already have one, which HMRC is aware of hence adding it in to their questions to try and catch us out.

[JonSmile]

Hi

Thanks for the answers.

I think that if I can justify the recent change in company policy and the need for the office then it may seem less as just having an office for the fun of it.

If I wanted to gain the points I would just splash out in adverts. Selling my services in a professional mag would burn £1k easily.

So my (legitimate) reason is that as just moved home, the spare room / office is no more so need somewhere other than the kitcheen table to do accounts/ design work etc.

[TestMangler]

Breaking news chaps, I've got the PERFECT MAGIC BULLET solution to the IR35 problem. All you have to do is Opt Out !! here is an excerpt from a mail I got from an agent today:

"We have provided a contract with an ‘opt-out’ agreement due to most of our contractors having limited companies and wanting to remain outside IR35. I have been speaking to our Legal Team and if you would prefer to ‘opted-in’ this can be arranged, however, you will then be inside the scope of IR35 and wont reap tax benefits."


See, if only we'd known that, all this farting around with working practices and contracts wouldn't have been required.

[northernladuk]

Breaking news chaps, I've got the PERFECT MAGIC BULLET solution to the IR35 problem. All you have to do is Opt Out !! here is an excerpt from a mail I got from an agent today:

"We have provided a contract with an ‘opt-out’ agreement due to most of our contractors having limited companies and wanting to remain outside IR35. I have been speaking to our Legal Team and if you would prefer to ‘opted-in’ this can be arranged, however, you will then be inside the scope of IR35 and wont reap tax benefits."


See, if only we'd known that, all this farting around with working practices and contracts wouldn't have been required.

See, the agents are good for something.... even if it is just for a big of a giggle

[TestMangler]

See, the agents are good for something.... even if it is just for a big of a giggle

If this agency wasn't causing me serious blood pressure issues, I might actually be laughing.

They've provided one of the worst contracts ever seen. It actually has a 'NO SUBSTITUTION CLAUSE' and some other hilarious tulip and the they go and send me that crap above because I questioned their Opt Out form which says "I am Opting Out of my own free will" and comes attached to an email saying 'Please sign the attached Opt Out form. Please note that this is compulsory'

C~~TS !!!!

[BolshieBastard]

If this agency wasn't causing me serious blood pressure issues, I might actually be laughing.

They've provided one of the worst contracts ever seen. It actually has a 'NO SUBSTITUTION CLAUSE' and some other hilarious tulip and the they go and send me that crap above because I questioned their Opt Out form which says "I am Opting Out of my own free will" and comes attached to an email saying 'Please sign the attached Opt Out form. Please note that this is compulsory'

C~~TS !!!!

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