IR35 as justification for admin fees

[MG-FIDO]

Hi all,

Apologies for this being more of a moan than anything.

I operate as a sole trader rather than being set up as a limited company.

I've just received a letter from a company that I've done work for on and off over the last couple of years saying that following a review of their IR35 policy, they will be charging me a small monthly fee to administer my pay. They state that they are doing this in order to "help me" remain outside of IR35.

They also insist on several annual training certificates which aren't required by any of the other firms I work for. They put on company training sessions to cover these certificates and again they've said that they'll be deducting related course fees to show that I'm not an employee and to protect my IR35 status.

Whilst the monthly administration fees are relatively small, I can't help but feel that they're using IR35 as an excuse to claw back money from each of the contractors working for them. I wouldn't necessarily mind but my contract originally stated that I should send a monthly invoice to them which I did. These invoices were ignored and I was informed that there was no need to provide invoices. Instead I received a seemingly random amount of pay each month into my account and no written record of what I'm being paid for. I'd inevitably have to spend time each month documenting the shifts I'd worked, the rate of pay agreed and providing email evidence of this before I'd get the right amount paid. It seems a bit much to be charged a monthly fee for this inconvenience!

I realise that this is probably all a bit petty and that ultimately if I don't like these changes I can always work elsewhere, but I fancied getting it off my chest and wondered if anyone had any views on the situation.

[Eric Mc]

As you are a sole trader IR35 does not apply to your circumstance. Therefore they cannot justify charging you for any costs they say are related to IR35.

[sleepezy]

A Eric correctly says. If you are a sole trader, not operating through an intermediary, the legislation simply does not apply to you.

[mmm-five]

I'd probably start sending them invoices again, instead of waiting for them to decide how much & when to pay.

I now have a full, inside-IR35 day job, but still work for other contractors/consultants/companies on an ad-hoc basis (outside of IR35).

I keep a detailed log of all my hours/work done for each client, and then send them an invoice as agreed (weekly, monthly, or deliverable-based) which matches this breakdown, but with the costs/total bill on there.

[Eric Mc]

mmm-five said:

I'd probably start sending them invoices again, instead of waiting for them to decide how much & when to pay.

They can only do that if they formally put the OP on the payroll. He is working for them as an individual. IR35 is not relevant to his situation.,