Q. I am considering taking a contract as an Interim Recruiter and, as it would be my first Contract i have considered how I can remain outside of IR35. One of my thoughts is that if I genuinely operate a ‘Talent Consultancy’ (advising on how to source and conducting search and selection campaigns etc) on the side of my contracting duties, I would be able to remain outside of IR35. Would this be the case?
A. Whilst performing services to multiple clients alongside your main contract is positive from an IR35 perspective. It is unlikely to be considered a determining factor to place you outside of IR35 in isolation.
Right of substitution, Control and Mutuality of Obligation are the 3 most important tests that HMRC will look at in the event of an enquiry and they are likely to weigh more heavily than having multiple clients.
There are other factors which also help to contribute to determining your IR35 status and demonstrating genuine self-employment, such as financial risk, provision of equipment, part and parcel and exclusive services. However as stated above such factors would not have a conclusive bearing over your status and would not be strong enough alone to place you outside of IR35. When considering IR35, it is about building up a picture of the entire arrangement and forming an opinion based on the evidence overall.
Download the Qdos IR35 Guide for more information.
This answer was provided by Qdos Contractor
Leave a Reply