IR35 detailed comment


Skills and Training

The issue

The issues here would appear to be whether there is anything either in the contract, or in the actual relationship between Individual and Client, in relation to this factor which

·         helps towards a decision on whether that relationship, had it been direct and without a company in between, would have been an employment contract - a contract of service - or a contract for services, or

·         would be inherently inconsistent with a contract of employment.

Legal issues, and the Revenue Guidelines

This point is mentioned in the Guidelines under 'Financial Risk'.

Comment

what would the position be likely to be in relation to this factor for a hypothetical employee?  Logic and experience suggests that a hypothetical employee would

·         probably be required to maintain any relevant professional qualification, and to maintain skills at least to the extent necessary for that purpose

·         generally be entitled to expect that an employer would at least subsidise the cost of relevant training. 

·         If an employee underwent speculative training, that would not be likely to be subsidised by the employer - but neither would it be likely to be part of the duties of the employment - instead, it would probably be wholly extracurricular.

what would the position be likely to be in relation to this factor for a hypothetical obviously self-employed person or consultancy (eg Andersens, or by PWC, or EDI?)  Logic and experience suggests that a hypothetical obviously self-employed person or consultancy would probably take steps to maintain and develop skills at his / her own cost, and also quite possibly invest from time to time in speculative training for skills that may have relevance tomorrow.

do the facts here actually provide a helpful pointer towards either view?


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