Written by Leigh Foster
Following on from my previous blog regarding IR35 and the right to substitution, I wanted to talk about another major test on the IR35 determination status – the control over services.
The level of control exercised by the client over the services which are going to be provided, and how, when, and where they are provided are so important when determining the IR35 status.
A contractor can mutually agree to execute a particular task at a specific time and place with the client, but not be subjected to any control or supervision by the client. The contractor should be able to execute the work how they decide. For control to be relevant, it needs to be more than light monitoring or reviewing the output. It’s when the contractor is tied hand and foot to the client, this could be deemed as a detrimental level of control and would affect the IR35 determination.
What is control?
If a contractor is being controlled by the client, this will be made clear as the manager will determine what work needs to be done, with regular monitoring of the work. Where the client dictates which job they work on due to priority, there will be a right of control over what is to be done.
Where the services are provided?
Usually, a contract for services (Employment) where the services are to be provided from, or may state whether a contractor may provide the services from a location of their own choice. There are some exceptional circumstances for security reasons that the contractor cannot work on site such as banks, government and defence.
When the services are provided?
Control over when the contractor does the work can vary. An employee would be required to work the hours set out by the client, whereas a self-employed individual would be expected to arrange their own hours. For budget reasons, it is acceptable for the client to state the maximum number of hours worked in a day or week, however the allocation of these hours should be left to the contractor to decide.
In summary, a few things to look out for are; an indication that the contractor will be supervised by a line manager, dictating work times (including start and end times) and break times, any staff perks including holiday or sickness pay.
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