Category: Contractor Industry News

Contractors should remind clients that they are a professional business, rather than an employee, an expert has claimed.

Kate Cottrell, co-founder of IR35 advisory firm Bauer and Cottrell, told Contractor UK that "employer type" direction on jobs "is not helpful" as it can lead to problems with IR35 status.

She said that maintaining a professional business approach will "serve to remind clients of the differences between professional contractors and employees and especially the differences in the levels of control".

Ms Cottrell was responding a reader enquiry about a request from a client for people to restrict remote or home-based working to one day a week, with the contractor being concerned that it pushes him towards IR35 status.

The expert said that the trend for clients dictating day-to-day employment conditions is a "worrying" one, as IR35 status is "about the reality of the working arrangements".

According to HM Revenue and Customs, it will monitor compliance with IR35 legislation and ensure that people pay the correct tax and national insurance contributions.

Posted by John Crawley