The 'real-life' Gordon, as defined by the Inland Revenue...
'Gordon' is, famously, the name given to an imaginary contractor in the Revenue's guidance notes who suffers the unfortunate fate of being well and truly caught by IR35. UKTECH recently had the privilege of meeting the 'real-life' Gordon, one Gordon Baillie, who told us why he does not want to stop being a contractor...
The real 'Gordon'
Gordon Baillie is a database administrator who currently works for CitiBank and had previously worked for Deutschebank under his own limited company. He spends half of his working time on site and half of his time away, at other locations. He only works one contract at a time so he is not classed as a 'Charlotte' (the Revenue's example of a contractor who could or could not be affected by IR35 and was referred to by Mr Barling QC in court to highlight the uncertainty caused by the legislation).
He is a Gordon by name and a Gordon by nature because his contract status fitted the Revenue's guidance notes of someone who works 'continuously' on one contract, as he does, for long and sometimes extended periods of time (in his case 15-16 months per client) so consequently will be in IR35's direct line of fire.
Not only does Gordon provide a real life example of the way in which the Revenue 'whacks' people that fall the wrong side of being a Charlotte, it also highlights the issue of contracting for a living when becoming a permanent employee is unfeasible on ageism grounds. "I got into contracting because I was made redundant and the only job I could get was as a contractor," Gordon said. "I went for an interview at JPMorgan and was told I was 10 years too old for the position. That was when I was 38, I am now 46!"
Asked what the other benefits for him working as a contractor were, other than that it provided him with a livelihood, he replied, "I can spend time with my sick daughter without my client getting too anxious that I'm not always in the office. Because I'm a contractor I'm flexible and if I'm not working for them then they're not getting charged and I'm keeping their business running. If I was a permanent employee then my manager would be anxious because I'd have used up all of my holiday entitlement and I'm sure he would doubt my integrity."
"I just love the freedom of being a limited company and like to be responsible for buying what my business needs, but with the 5% reinvestment rule of IR35 I am having to take the expenses out of past profits and purchases."
Gordon expressed uncertainty over whether or not the outcome of the judicial review would make him leave the country but was certain about one thing, saying "Whatever the outcome of the PCG's challenge I do not want to stop contracting."
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Richard Powell, UKTECH