Part and Parcel of the Organisation as an IR35 Factor

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Part and Parcel of the Organisation
Part and Parcel of the Organisation as an IR35 Factor

Part and Parcel of the Organisation

It is crucial that  company doesn’t make a contractor part and parcel of the organisation, barely distinguishable from the permanent staff except in the way they are paid. If HMRC do suck you in, they will see you as a disguised employee of that organisation.

The trick is to continually differentiate yourself from permanent employees.

Here are some Don’ts:-

– Don’t manage staff at your client
– Don’t be managed by staff there
– Don’t operate under the same hours as they do
– Don’t go to meetings where the purpose is to tell you how the company or department are doing
– Don’t use the subsidised staff canteen unless you have to pay an unsubsidised amount
– Don’t join the sports & social club or take part in activities in it unless you can differentiate between the amount you pay and what the permanent employee pays
– Don’t ask if you can take a holiday. Tell your client when you are going

Substitution by Permanent Staff

– Make sure that one of the permanent staff can’t substitute for you when you are off
– If you have to wear a security badge make sure that it differentiates you from the permanent employees, e.g. by having it say Contractor on it
– Don’t use the subsidised company car park. Park it outside or in another car park
– Don’t have an appraisal like the permanent staff. If the client insists on it ask if you can take them out to lunch where they will give you informal feedback on the service you are providing – which is more of a supplier / customer type of meeting. Permanent staff don’t take their bosses out to lunch
– Make sure you are not on the company’s organisation chart

No Job Description

– Don’t have a job description unless it defines you as an external supplier and differs from the job description of permanent workers
– Certainly don’t have business cards with the client’s name on it. Have your own with your own company name
– Don’t use the company’s equipment if you can help it. Use your own PC
– Try not to use the same desk all the time
– Don’t go to the Christmas Party unless contractors have to pay and permanent staff don’t
– Don’t have a rolling contract as that is basically what permanent employees have

Major IR35 Factors

Being part and parcel of the organisation is not a major factor in determining of IR35 applies but when it is a close run thing you would be much better not to look and act just like an employee.

It would seem no fun not to be able to do any of the above. However, make sure that in most of these areas you are able to differentiate yourself from one of the company’s employees.

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