Business entity tests

**RasputinDude** · 10 October 2012, 07:53

I believe that I am low risk. Hector, I am sure, knows that I am a scumbag tax evading criminal who is literally taking nurses out of hospitals while they are treating poor needy children whose parents can't feed or clothe them because I am not paying "my fair share".

**GB9** · 10 October 2012, 08:04

No. But as the experts will tell you, the BE tests bare little relation to the law. They are just there for HMRC to decide if you are worth bothering with. Contract and working practise are key. Having an office address that is obviously not used counts for nothing.

**Butcheroo** · 10 October 2012, 08:37

Originally posted by GB9 View Post

No. But as the experts will tell you, the BE tests bare little relation to the law. They are just there for HMRC to decide if you are worth bothering with. Contract and working practise are key. Having an office address that is obviously not used counts for nothing.

I hear what you are saying but if they look at the tests to decide whether to bother to investigate you or not they must be worth it.

I hate all this current media pants over freelnacers we are now up their with investment bankers

**MyUserName** · 10 October 2012, 08:47

If you start pulling tricks to articifically increase your score HMRC will stamp on you.

I do not know what actually happens but I would assume that if you have a separate address for an office then they are likely to ask what you do at that address. If you cannot provide anything that you realistically do then they will regard this as aggressive tax avoidance and set their sites on you.

Look at your business and ask whether you are outside of IR35. If not then ask yourself whether claiming you are is worth the ever increasing risk.

If you are then HMRC will look for reasons to claim that you are inside and several weak pointers will quickly stack up so be careful not to give them a stick to beat you with e.g. make sure that your contract is accurate, do not use the holiday request system etc.

**captainham** · 10 October 2012, 08:59

I was looking at serviced offices near where I live recently, and I could in theory rent a tiny little office area in a shared office for the same cost each month as your average accountant, which in turn will push me into the 'Low Risk' category...but then I think, why should I waste 100 quid a month on an office that takes longer to get to than my current one (upstairs), is not as comfortable, etc, etc, just for some ridiculous point scoring on a stupid bloody test?

Yes I could genuinely work so it wouldn't be a sham office, but ultimately it would still be a sham as it will only be for points scoring, so I won't be bothering with that.

**kingcook** · 10 October 2012, 09:23

Originally posted by Butcheroo View Post

Is anyone out there actually bothering trying to get to low risk on these tests

If we pay £1200 a year on some random advertising and spend £300 a month on a small office plus all the usual stuff in a good contract it is possible to scrape 20+ points. Of course the big one is to actually substitute but how anyone is realistically going to do that is beyond me

Has anyone got to low risk?

I had a go when they first appeared. I came out as a high-risk, low lying scumbag like everyone else in HMRC's eyes.

I'm not going to bother renting out office space or anything else. I'm just ensuring that my actual working practices are more of a pointer to self-employment, instead of employed. That's all one can do, IMO.

**captainham** · 10 October 2012, 09:27

Originally posted by kingcook View Post

I had a go when they first appeared. I came out as a high-risk, low lying scumbag like everyone else in HMRC's eyes.

I'm not going to bother renting out office space or anything else. I'm just ensuring that my actual working practices are more of a pointer to self-employment, instead of employed. That's all one can do, IMO.

This.

Everything else is irrelevant. The tests are essentially useless and prove nothing one way or the other. If they investigate, it's only your working practices that mean anything at the end of the day. Get these right and you're safe, otherwise get ready to bend over and receive.

**blacjac** · 11 October 2012, 08:38

Originally posted by Butcheroo View Post

Is anyone out there actually bothering trying to get to low risk on these tests

Don't have to try, as I am running a business and not just trying to maximise my take home.

Originally posted by Butcheroo View Post

Has anyone got to low risk?

Cheers.

Yes thanks.

**northernladuk** · 11 October 2012, 10:17

Originally posted by Butcheroo View Post

Folks

Is anyone out there actually bothering trying to get to low risk on these tests

If we pay £1200 a year on some random advertising and spend £300 a month on a small office plus all the usual stuff in a good contract it is possible to scrape 20+ points. Of course the big one is to actually substitute but how anyone is realistically going to do that is beyond me

Has anyone got to low risk?

Cheers.

The fact you are having to try to create a situation to get low risk makes you high risk IMO. They were not designed to give you a set of guidelines on how to fudge a low risk number. HMRC will be well aware of that and all over it like a rash. 'Ah Mr Contractor, you have 10 years experience and rent an office 2 months after the tests come out?? Interesting.......'

Business entity tests