IR35 Business Entity Test

**amcdonald** · 27 April 2012, 10:34

That sounds dead easy to get into low risk

Have a contract of employment with your company and outsource some of your work to other contractors every year or so...

**LisaContractorUmbrella** · 27 April 2012, 10:48

Originally posted by amcdonald View Post

That sounds dead easy to get into low risk

Have a contract of employment with your company and outsource some of your work to other contractors every year or so...

Last I heard there were only going to be 6 questions and I wouldn't mind betting that number 12 is not amongst them

**swamp** · 27 April 2012, 10:56

I read somewhere that they might link test results to the Agency Workers Regulations. So if you are high risk and inside IR35 then you would be inside the AWR and vice versa. Clients would then make contractors take the test to see if they are likely to need to pay for holidays and sick pay.

**amcdonald** · 27 April 2012, 10:58

Originally posted by swamp View Post

I read somewhere that they might link test results to the Agency Workers Regulations. So if you are high risk and inside IR35 then you would be inside the AWR and vice versa. Clients would then make contractors take the test to see if they are likely to need to pay for holidays and sick pay.

I hope so that would finally make clients care about IR35 if it would cost them money!

But then again some are so risk averse they'd rather stump up for holiday pay, or worse they'd avoid using contractors at all

**swamp** · 27 April 2012, 11:15

Originally posted by amcdonald View Post

I hope so that would finally make clients care about IR35 if it would cost them money!

But then again some are so risk averse they'd rather stump up for holiday pay, or worse they'd avoid using contractors at all

Definitely a double-edged sword. But someone needs to ask contractors to take the test, otherwise it is pointless. If it goes on the P35 it will be "more red tape for struggling businesses", and it won't make it until May 2013 at the earliest. Maybe HMRC will send out some letters inviting small companies to take the test.

**badger7579** · 27 April 2012, 11:18

So are we going to get cold calls from HMRC regarding this?? I may suddenly get a poor mobile sig.........................................

Anyway judging from HMRC's own stats I think the chances of being contacted are slim.

Contractor group attacks

**BolshieBastard** · 27 April 2012, 11:30

I have no intention of falling for this loaded pap from HMRC, thank you.

**scooby** · 27 April 2012, 13:38

Originally posted by swamp View Post

<snip>

Following that, question 4, contract of employment with own Ltd co would see you at low risk on its own...

What is the validity of doing this? £12k a yr job with paid hols etc as a perm within your limited. Must be an option surely? (await blunt response from MLUK

)

**northernladuk** · 27 April 2012, 13:49

Originally posted by scooby View Post

Following that, question 4, contract of employment with own Ltd co would see you at low risk on its own...

What is the validity of doing this? £12k a yr job with paid hols etc as a perm within your limited. Must be an option surely? (await blunt response from MLUK

)

Think about it again..... particularly around what you are to your company already.

IR35 Business Entity Test