Sep
20
2010
Terms and conditions of a contract 'may affect IR35 eligibility'
Posted by Daniel Frost
IT contractors with an umbrella company have been told that the terms and conditions of each client they work with can be affected if they are inside or outside of IR35.
This is according to Kate Cottrell, a former Inland Revenue tax inspector, who made this point when addressing one contractor's query about if he could avoid IR35 issues completely by dividing his career between working at a web design company for a number of clients and on contracted projects, Contractors UK has reported.
Whereas a contractor usually has control over substitution, control and mutuality issues that often arise when dealing with IR35 when working at a company, like the web design one in this case, Ms Cottrell explained that they are at risk through their contracted periods.
These problems centre on the fact that contractors could be caught in the IR35 trap on the basis of their "relevant engagements", with Ms Cottrell believing that it could all depend on how they go about their work within a contract.
She said: "For example, you could provide web design services to a client with no in-house expertise so you are left to merely deliver the services."
Seb Marley recently told the website that a contractor is not usually at risk of any IR35 issues arising from been on an "all employers" email list when working with a client.
IT contractors with an umbrella company have been told that the terms and conditions of each client they work with can be affected if they are inside or outside of IR35.
This is according to Kate Cottrell, a former Inland Revenue tax inspector, who made this point when addressing one contractor's query about if he could avoid IR35 issues completely by dividing his career between working at a web design company for a number of clients and on contracted projects, Contractors UK has reported.
Whereas a contractor usually has control over substitution, control and mutuality issues that often arise when dealing with IR35 when working at a company, like the web design one in this case, Ms Cottrell explained that they are at risk through their contracted periods.
These problems centre on the fact that contractors could be caught in the IR35 trap on the basis of their "relevant engagements", with Ms Cottrell believing that it could all depend on how they go about their work within a contract.
She said: "For example, you could provide web design services to a client with no in-house expertise so you are left to merely deliver the services."
Seb Marley recently told the website that a contractor is not usually at risk of any IR35 issues arising from been on an "all employers" email list when working with a client.