Working several projects for one client 'should not affect IR35'

Contractors who have taken on a number of projects for a single client should not be affected by IR35 regulations.

This is the view of freelance advisors the Professional Contractors Group (PCG), which said it is the nature of an arrangement and not the duration which determines whether or not HM Revenue & Customs (HMRC) can class contractors as permanent staff.

According to the PCG, if contractors can show that they are not simply undertaking ongoing work, but are in fact working on separate projects, the HMRC will "not have a case".

The organisation said contractors should also be able to demonstrate through their contracts and working practices that they have control over how the work is carried out and they have an "unfettered right of substitution".

"HMRC must prove that personal service, control and mutuality of obligations (the expectation that work will be offered and accepted) existed in the engagement," the PCG explained.

Brookson Managing Director, Martin Hesketh said: "This news article confirms the importance of contractual documentation. Not only should contractors who work on multiple projects ensure that there are contracts in place for each, it is essential that you read the contracts and ensure that they are consistent with your working practices and accurately reflect your relationship as an independent contractor with your client.

"If in doubt, you can take professional advice on your IR35 Status from our experienced Legal Team."