Weekly Poll (21/05/09)

[Admin]

The poll for this week is about IR35 and subsistence. Following Bel Grant's article on Tuesday, we want to hear from all those contractors that are currently working outside IR35*

For these individuals, we'd like to know if you regularly eat in the client's canteen or only when "it’s reasonable and justifiable".



* paying themselves primarily in dividends with small salary that is then subject to full income tax and national insurance.

[The SMG]

As I have mentioned before, most contractors don't give this a second thought (when they really should do). HMRC will consider these peripheral factors in an employment status enquiry and they may well tip the balance in certain circumstances.

The answer is pretty obvious - mix it up. Don't just visit clientco's canteen because it's discounted and everything else is doing it. Hector doesn't care about your 'employed' colleagues because they (in HMRC's eyes) are paying their fair share of taxes.

[CliveP]

Originally Posted by The SMG

As I have mentioned before, most contractors don't give this a second thought (when they really should do). HMRC will consider these peripheral factors in an employment status enquiry and they may well tip the balance in certain circumstances.

The answer is pretty obvious - mix it up. Don't just visit clientco's canteen because it's discounted and everything else is doing it. Hector doesn't care about your 'employed' colleagues because they (in HMRC's eyes) are paying their fair share of taxes.

I would tend disagree with this. Like many of my fellow freelancers, I take a prudent view when it comes to eating in the canteen. For example, at my current place of work, I’ve made a rule to eat there no more than two times a week. If that means having to pop out to the local M&S food then that's what I’ll do. This approach is not uncommon amongst the freelancers I’m working with at present and I simply don't accept that the above argument is the norm...sorry.

[Beefy198]

I've said it elsewhere before and I'll say it again - urinate in a bottle and **** in a plastic bag. Then, when the HMRC decide to review your working practices you can quite contently say that you make use of NONE of the onsite facilities that the permanent staff enjoy.

It might make you unpopular in the room though....

[curleyted]

If I manage to rip myself away from my work I will quite happily dive in for a coffee. I've never been offered discount though...

[bez]

I do, but like curleyted I've never been offered a discount. Cushty if you do!