New PCG IR35 Questionnaire

[malvolio]

That's because unlike Labour and the Tories lots of Lib Dem parliamentary candidates actually have to have had proper jobs including running small businesses.

Yes - but the ones at the top table haven't.

[swamp]

Interesting article here

HMRC to appoint National IR35 Compliance Coordinator

[Sockpuppet]

Looks like the old saying is you don't have to out run a tiger, just be faster than the man next to you is coming more and more clear.

Then again with contractors at current Client who are on ~£1000/day when they left employment on Friday and returned monday as a contractor then you understand why its needed. They're not interested in changing roles, they're not looking for something else you understand where the govt is coming from.

I do think this however will descent into a mire of the least prepared loses. I mean the amount of tax dodging in the premier league would net lots compared to most contractors just most footballers have very expensive lawyers who can argue their way out of most things to defend them.

[scooby]

it's coming this way soon: IR35 business test signals more confusion for contractors :: Contractor UK

Still doesnt appear to be clear according to this article.

[malvolio]

it's coming this way soon: IR35 business test signals more confusion for contractors :: Contractor UK

Still doesnt appear to be clear according to this article.

It's patently not clear, that's the problem. The hope on all sides is to gain clarity over the next year.

[TaxedToDeath]

Also my view

Sorry Bobspud. I am happy to reply publicly but do wonder what you have been told privately. Maybe Mal will tell us.

My personal view is that the calls for the abolition of IR35 or later calls for the use of business entity tests (previously rejected by the OTS and the Government) has resulted in little help for the average Freelance Contractor. Indeed with the previously extremely low levels of IR35 investigations some would consider the situation now to be far worse. The fact remains that the IR35 legislation has not changed so there is still a need to consider your IR35 status on a contract by contract basis. What has changed is that for those taking the business tests and scoring (and proving) to be low risk means that HMRC will close the review as soon as possible. Guidance and HMRC assistance will be improved and we should see an end to investigations going on for many years.

HMRC were tasked with improving the administration of IR35 and measuring the results of this new approach. As has always been obvious to many they can only do this by opening lots of new investigations which will be run by new specialist HMRC IR35 teams. The business tests were not HMRC's idea and are a small part of the whole process. My view has always been that as the IR35 legislation has not changed this has never been an opportunity to change IR35 and it would be naive to think otherwise. Others disagree.

Kate

It's refreshing to see that Kate is arguing against these daft tests.

I usually post on Shout99 these days, so I won't repeat all of what was said in this post.

I left the PCG after the debacle with the OTS Forum followed by the fact that they were determined to get into this IR35 Forum to 'save face'. I spent a lot of time trying to persuade them that this could only lead to more problems, but they would not listen. This was in threads where people were putting forward their great ideas as to what the tests should be - and they were really, really silly. I won't re-write all of the thread I linked above, details are there.

The other big question is... how will HMRC be able to incorporate these tests into their risk assessment? Since HMRC will require information that they don't currently have, I can only see it being done through more questions on the P35.

Combined with more investigations... horrible own-goal. And they were warned going in. Sigh.

[Lewis]

So what would happen under the following circumstances?

Two contractors using the same company (both employees and shareholders but maybe not directors). Do they get +35 points from

Does your business engage one or more workers who generate at least 25% of your business turnover annually?

People renting a serviced office (which they don't use) for a few hundred a month. Do they get +10 points from

Does your business own/rent separate business premises which are separate from your home and client’s premises?

Both would make you Low Risk. The tests seem utterly daft and almost random to me.

[jamesbrown]

The tests seem utterly daft and almost random to me.

Somewhat, but anyone going out of their way to "pass" this test is obviously aware of the test and IR35 more generally. Those people have probably already taken the necessary care in having their contracts reviewed and working practices aligned, which is what matters in terms of the legislation. There are many others than haven't, and won't be aware of this test, let alone trying to circumvent it (and I'm not really sure why anyone would bother).

[dx4100]

sigh...

Seriously considering moving on from contracting. The hassle and risks only seem to have gone up as time as passed by. These tests look like an utter waste of everyones time.

Been in my current contract now for four years and then doing the odd bit of website work around it. I am pretty sure if the HMRC took a look at me I would be under investigation pretty dam quick. Got my contracts reviewed, insurance, PCG member etc etc... But even with all this I still feel I am judges ruling away from bankruptcy. Pretty sure the insurance I have would find away of not paying up. Most insurance products do try to get out of it after all.

Its not right. Its bad for the economy and its tulip for me to have even question if its worth carrying on. Wish they would just clarify it. Full stop.

Self serving rant over.

[swamp]

The other big question is... how will HMRC be able to incorporate these tests into their risk assessment? Since HMRC will require information that they don't currently have, I can only see it being done through more questions on the P35.

Combined with more investigations... horrible own-goal. And they were warned going in. Sigh.

My understanding is that they will ask these Business Entity Questions as part of an initial investigation (
<snip>)

The new process, which is designed to streamline IR35’s administration by HMRC, will start by HMRC asking each contractor at the outset of any status enquiry the question:

“Have you considered IR35? If so why do you consider yourself to be outside of IR35? Please provide evidence to support this answer.”

It won't go on the P35. There will be a tulip-load of investigations instead.