New PCG IR35 Questionnaire

**pickod** · 3 April 2012, 18:18

Ha!

I got exactly the same

**MrRobin** · 3 April 2012, 18:20

I just completed it and got High Risk.

No big surprise really... Although I get my contracts reviewed and passed for IR35, I know I'm in that grey area...

What does all this mean though? Is it no longer contract to contract based? If deemed inside with this new test, will Hector be after taxes for the last X years?

Will anyone here change their attitude to contracting from this? Interested to hear your thoughts.

**scooby** · 3 April 2012, 18:23

Originally posted by MrRobin View Post

I just completed it and got High Risk.

No big surprise really... Although I get my contracts reviewed and passed for IR35, I know I'm in that grey area...

What does all this mean though? Is it no longer contract to contract based? If deemed inside with this new test, will Hector be after taxes for the last X years?

Will anyone here change their attitude to contracting from this? Interested to hear your thoughts.

For me, it didnt even ask F&C or Moo, only substitution, advertising and premises / assets. Would be interesting to see what impact an office would have as that would be worth £100 expense (i know someone with space)...

In fact, it would be interesting to see how the questions are weighted. Mal can you help get this info?

**malvolio** · 3 April 2012, 18:34

Yes, but I'm not saying much until HMRC publish their own take on them.

Any PCG people really should give them a run (they're on the main website) since the more evidence PCG have about they they relate to the real world the better they can argue their corner. Bascially these are intended to see if you are a business, not if you are IR35 caught, the logic being that there is no mileage in investigating genuine businesses for IR35. The idea is that contractors operating as genuine businesses will face a greatly reduced risk of an IR35 investigation. For those that have seen the tests, you will appreciate they are not exactly definitive, and to my mind show some symptoms of being written by someone who doesn't understand the question (sorry, the rest will have to wait until HMRC put them up on their own website).

Clearly, if everyone comes out as High Risk (or even Low Risk) they won't work. Weightings are one cause for concern, and may be revisited as a result of the early test results. Chances are that the questions will remain as they are though.

And remember, these are not "Are you IR35 caught tests", they are merely a filter to see if it's worth pursuing your business for IR35. The original IR35 case law remains firmly in place.

**scooby** · 3 April 2012, 18:41

Originally posted by malvolio View Post

And remember, these are not "Are you IR35 caught tests", they are merely a filter to see if it's worth pursuing your business for IR35. The original IR35 case law remains firmly in place.

I think this is the main point...

As said, it would be interesting to see what impact an office and £1200 of advertising would have, as these are easy to source / do and infact, the advertising could drive up business if done correctly.

**dynamicsaxcontractor** · 4 April 2012, 06:42

Originally posted by scooby View Post

I think this is the main point...

As said, it would be interesting to see what impact an office and £1200 of advertising would have, as these are easy to source / do and infact, the advertising could drive up business if done correctly.

Don't forget that you need to fail to get paid for 10% your work as well.......

**Sockpuppet** · 4 April 2012, 08:12

Low Risk

Thanks for taking the tests. Under the proposed system your company would be considered to be at low risk of operating within IR35. Were HMRC to enquire about your IR35 status, it is highly unlikely that it would pursue an investigation, providing you were able to provide evidence that you have answered these questions correctly.

Which is surprising as I seemed to answer most of the question contrary to what I'd expect to be the "right" answer.

**pickod** · 4 April 2012, 08:16

The limit on 24 months for substitution was a bit annoying.

I have substituted twice and sub-contracted once in the last 10 years but the questionaire takes no consideration of anything over 24 months.

If they are looking at whether you are a real business or not initially I would have thought that the fact that my company has actually done this would be a large pointer towards legitimacy?

**tarbera** · 4 April 2012, 09:05

A potted history

For any PCG members pop over and read this post

https://www.pcg.org.uk/info/ubbthrea...53#Post1339453

It's gives a good view on why we are at this point with the HMRC

New PCG IR35 Questionnaire