Can remote work be the silver bullet for outside IR35?

[anim]

Did a quick IR35 test on HMRC's website

From client's perspective.

With working remotely I have provided this answers:

Does your organisation have the right to decide how the work is done?

No, the worker solely decides

Does your organisation have the right to decide the worker’s working hours?

No, your organisation and the worker agree. Could be Worker only decided with work remotely. Many people dont stick to 9-95.

Does your organisation have the right to decide where the worker does the work?

No, the worker decides. With remote I can be at home, co-working or anywhere really. But even a YES answer, results in outside determination.

Will the worker have to fund any other costs before your organisation pays them?

Yes

Others are standard answers, in fact I answered them in restrictive manner.

Now the bold is important.

Will the worker have to fund any other costs before your organisation pays them?
Worker’s financial risk
This can include non-commuting travel or accommodation, or external business premises for this work only.

This asks if you pay for an office. At the moment my clients office is shut for 99% of the stuff. I rent a co-working space close to them, because I dont want to have meetings at home/other homes in the rare occasion this happens.

I got outside result. The above is 100% true and follows current working practices. In case your client is willing to run the test (some will just say no LTDs of course) is this the silver bullet?

[vwdan]

No, and if anything the more permies WFH the more it dilutes the argument

[ladymuck]

It would (should) be one of many factors that all add up, not just this one element.

[AtW]

Will be new outsaucing boom

[anim]

No, and if anything the more permies WFH the more it dilutes the argument

How so? I dont thing where the permies work has anything to do?

[anim]

It would (should) be one of many factors that all add up, not just this one element.

Of course, but this setup gave me outside answer. Other factors are really the standard answers:

Who are you?

Hirer

Does the worker provide their services through a limited company, partnership or unincorporated association?

Yes

Has the worker already started working for your organisation?

Yes

2. Worker’s duties
Will the worker be an ‘Office Holder’?

No

3. Substitutes and helpers
Has the worker ever sent a substitute to do this work?

No, it has not happened

Do you have the right to reject a substitute?

Yes

Has the worker paid another person to do a significant amount of this work?

No

4. Working arrangements
Does your organisation have the right to move the worker from the task they originally agreed to do?

No, that would require a new contract or formal working arrangement

Does your organisation have the right to decide how the work is done

No, the worker solely decides

Does your organisation have the right to decide the worker’s working hours?

No, your organisation and the worker agree

Does your organisation have the right to decide where the worker does the work?

Yes

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HM Revenue & Customs
HM Revenue & Customs
Check Employment Status for Tax
What you told us
5. Worker’s financial risk
Will the worker have to buy equipment before your organisation pays them?

No

Will the worker have to fund any vehicle costs before your organisation pays them?

No

Will the worker have to buy materials before your organisation pays them?

No

Will the worker have to fund any other costs before your organisation pays them?

Yes

How will the worker be paid for this work?

An hourly, daily or weekly rate

If your organisation was not happy with the work, would the worker have to put it right?

Yes, unpaid and they would have extra costs that your organisation would not pay for

6. Worker’s involvement
Will you provide the worker with paid-for corporate benefits?

No

Will the worker have any management responsibilities for your organisation?

No

How would the worker introduce themselves to your consumers or suppliers?

They work for their own business

Page 3 of 4

HM Revenue & Customs
HM Revenue & Customs
Check Employment Status for Tax
What you told us
7. Worker’s contracts
Does this contract stop the worker from doing similar work for other organisations?

No

Is the worker required to ask permission to work for other organisations?

No

Are there any ownership rights relating to this contract?

No

Has the worker had a previous contract with your organisation?

Yes

Will this contract start immediately after the previous one ended?

Yes

Will this work take up the majority of the worker’s available working time?

Yes

Has the worker done any self-employed work of a similar nature for other clients in the last 12 months?

No

Page 4 of 4

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[eek]

I believe either Grant Thornton (or it may be EY) are currently using this exact argument to justify recharging clients for the IR35 "work" they did last year.

Equally I suspect the working at home bit is going to be given far less weight now everyone does it.

[anim]

I believe either Grant Thornton (or it may be EY) are currently using this exact argument to justify recharging clients for the IR35 "work" they did last year.

Equally I suspect the working at home bit is going to be given far less weight now everyone does it.

I dont thing working from home is the main factor here. I thing it is that you rent a co-work space for this project. Office being closed justifies it.

[eek]

I dont thing working from home is the main factor here. I thing it is that you rent a co-work space for this project. Office being closed justifies it.

So it's not remote work - you are renting an office.

And it's a very niche case that I suspect wouldn't survive a close inspection

[vwdan]

How so? I dont thing where the permies work has anything to do?

Because when the permies are doing the same thing as you, you're no longer being set apart. If every permie is 9 - 5, in the office and you're flexible hours at home then that's a great differentiator. If every permie is flexible working at home, then it's not and loses its status as an outside indicator.

Notice also how "Does your client have the right to decide how the work is done?" is immaterial for highly skilled work, for exactly the same reason. The permies doing the highly skilled work will also be working autonomously: ESM0527 - Employment Status Manual - HMRC internal manual - GOV.UK

Which I notice you answered "No" for, when I'd expect most contractors should be answering "Not Relevant"