IR35 Bonus as IT Contractors Work from Home Due to Rail Strikes

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Contractor IR35 Status Meetings
Contractor IR35 Status Meetings

IR35 Bonus for IT Contractors of Rail Strikes

One good thing about the Covid Lockdown (and there weren’t many) was that IT Contractors got to do a lot of their work from home.

However, in more recent times , there has been a drift back to pre-pandemic working practices.

The industrial action in the transport sector which is having such a damaging impact on retail, leisure, and hospitality businesses, has been a boon for the many tech businesses.

Drift Back to the Office Till Transport Strike

Said Christian Hickmott, Managing Director of Integro Accounting, “There had been a drift back to pre-pandemic working practices but with transport disruption ongoing more organisations are entrenching remote working and the associated technology, and this looks set to continue for the foreseeable future.”

This is very good news for IT Contractors many of whom would rather work remotely.

It also has positive IR35 implications for them.

Control as an IR35 Major Factor

One of the main IR35 factors which show whether a contractor is inside IR35 or outside IR35 is Control. If someone at a company has control over where, how and when a contractor does his or her work then that is a pointer to the contractor being inside IR35.

How much control can someone have at a company, though, on a contractor who is working remotely.

It would be best for the contractor, rather than just working from home during the transport strikes to inform the company in writing that he, or she, will be working from home during the transport strike and maybe beyond that too.

You shouldn’t ask permission to do so. You should just inform the client company that you will be doing so. I’m sure they would be happy enough with that.

Substitution as an IR35 Major Factor

It also means that a Substitution is less likely to be implemented. After all, if you can work from home why would you need to supply a substitute? Even if you were ill you could probably get your work done most times.

The courts have shown that the onus is on HMRC to prove that a named substitute would not be used. Of course the only proof of that pudding is in the eating.

They could only prove it if the contractor was unable to do the work and the substitute was never used. So, if you get the work done and never have the need for a substitute that is the Substitution Factor on your side.

Three Major IR35 Factors

The three main IR35 Factors are:-

  1. Mutuality of Obligation
  2. Substitution
  3. Control

So, that’s two of the three main IR35 factors on your side with the help of the transport industrial action.

It’s an ill wind that blows no one any good.

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