Controlling Person the new Contractor buzzwords

Controlling Person
Controlling Person

Controlling Person

Do you know what a controlling person is as related to IR35?

It’s the latest IR35 buzzword – and there are lots of them.

The Government published information today and it came up with a new concept which you will be hearing a lot more of.

Substitution, Control, Mutuality of Obligation – and now Controlling Person is the new buzzwords on the block.

It seems that anyone who is a ‘Controlling Person‘ at a workplace cannot be a contractor. So what is a controlling person?

Disguised Employee

This is all because leaders of Government Departments, such as even HMRC, were paying themselves through Personal Service Companies.

So, what should have happened was that they should have been told they were the epitome of disguised employees and an IR35 investigation started immediately.

What did actually happen was that it gave the Government another opportunity to attack the contractor community.

Direction and Control

It all depends on what they define a Controlling Person to be.

Watch the tribunals and the courts try to define it and say who is and who isn‘t.

However, if Control means the same as it does in the IR35 arena then anyone who is in control of what other people, what they do, how they do it and when they do it then a Controlling Person could be a Project Manager or even a Project Leader.

So this means that, in future, any roles where one person has Control over another person‘s work could be unavailable to IT Contractors.

That would suck big time!



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