IR35: Expenses - Question 10

Does all capital expenditure now have to be made by an employee through expenses and not by the company except where such purchases are made from the 5 per cent allowance?

Nothing in the legislation affects the capital expenditure that an intermediary can make. The intermediary is free to make whatever purchases it wants, however relief will only be given in working out the IR35 deemed payment for the 5% expense allowance and for capital allowances that would be allowed if the worker had incurred the expense and relief would have been given if he or she had been working for the client directly.