The aspects of control to be considered are what, where, when and how. It is extremely important to the Personal Service Company wishing to remain outside of IR35 that all aspects of control by the client are minimised.
In
Stagecraft v Minister of National Insurance it was said: "Where an engager can move the worker from job to job due to the changing priorities, then there will be a right of control of what is to be done and is a strong indicator of employment". Accordingly, HM Revenue & Customs (HMRC) will argue that it is the
right of the client to control what is to be done that is the determining factor. In practice, many skilled employees are left to their own devices about how the work is done and even what is done, but the employer will always reserve a right of control.
HMRC have accepted that control over where the work is done is not necessarily relevant, if location is determined by the nature of the work. However, if the work is done primarily at the client's premises, then it will be more likely that the worker will become integrated into the client's organisation or day-to-day routines. See
IR35 Compliance Guide - Part and Parcel of the Organisation.
Having the freedom to provide services from your own office or workshop, as opposed to the client's premises, is good, but only if the work undertaken there is fundamental to the services concerned.
Control over when the work is to be done can be a strong indicator of employment status. Adhering to the working times and working pattern of the client's employees makes it more likely that the worker will appear to be under the client's control and integrated into the client's organisation. The employee will be subject to formal procedures regarding holidays and sick leave, whereas the self-employed worker should be free of such restrictions.
For an engagement to be outside of IR35, both the written contract and your day-to-day working arrangements should be as free as possible from rights of control on the part of the client.