New IR35 Guidance hot off the presses

[BlasterBates]

Just don't get this. If it's only a guidance tool and not going to be used, they may as well have put a recipe for rice pudding up for all it's relevance, no?

The idea is to filter out the co's who are outside IR35. Anyone in the low risk category will fill out the test and then they're excluded from the target list, i.e. the principle of thining out the herd of Gnu's, simply by issuing an automated letter, with some lowly officials just double checking the evidence. It's clear that anyone at high risk won't fill out the test, there's no point.

[JamJarST]

The idea is to filter out the co's who are outside IR35. Anyone in the low risk category will fill out the test and then they're excluded from the target list, i.e. the principle of thining out the herd of Gnu's, simply by issuing an automated letter, with some lowly officials just double checking the evidence. It's clear that anyone at high risk won't fill out the test, there's no point.

Which is why they weighted it so that the average contractor would fall into the High to Medium risks!!

[rd409]

I can only repeat that PCG are a not-for-profit trade organisation with the key aim of getting IR35 repealed. They have many other strings to their bow, but making money out of IR35 is absolutely not one of them.

Sorry to paint everyone with the same brush, but that was a general statement, and not just for the PCG, but my general feeling still remains the same that the forum did have some interest in keeping the muddy water exactly that.

[rd409]

On a separate note, I pay £75 to my accountant for using their address as a registered address for my Ltd company. Can I classify this as using an office space which is not my home or client premises?





</tongue in cheek mode>

[scooby]

So, when the letters start dropping, the first reaction should still be to call PCG or Qdos for their guidance?

[Lewis]

I don't think that taking the tests will trigger a review. I am the first to admit that this may be cynical but I think that they are far more likely to write to everyone that they know is operating as a single person Ltd company and then go from there - as the document says, the onus is on you to prove that you are outside not on them to prove otherwise. I may even go so far as to say that the tests are a bit of a red herring

So the question in my mind is .... when we all receive these letters will our PCG and QDOS insurance take over from there or will we be expected to manage the communications until the point it turns into a full blown IR35 investigation. It would seem to me sensible that the insurance kick in at the point we get these new letters so that things can be closed down asap.

[BlasterBates]

Having read around I'm beginning to understand what Kate means about this test being not significant. It does appear that HMRC have got it's own criteria for identifying targets, so probably hardly any of the businesses they'll be targeting will pass the tests, otherwise they wouldn't bother. Probably just a "sop" to the PCG as part of their consultation. It seems the key thing is simply they're ramping up a new systematic approach, to see if they can rake in some IR35 income.

[TheFaQQer]

So, when the letters start dropping, the first reaction should still be to call PCG or Qdos for their guidance?

That's what I'll be doing - I pay both of them, so one of them can deal with the whole thing.

[LisaContractorUmbrella]

So, when the letters start dropping, the first reaction should still be to call PCG or Qdos for their guidance?

Only problem with that is that it's now up to the individual to provide 'evidence' that they are outside IR35 - it won't be a matter of negotiation until HMR&C have decided that you're not.

[JohnDoe]

Oh dear. So, in order to be classed as a genuine business, one of the things that will get your company approval from HMRC is by "risk" in terms of not being paid, so the company losing money. This is a complete contradiction. HMRC wants a company to make a loss and put itself under hardship just so it can be classed as a genuine business. Surely prudent businesses do everything they can to avoid making a loss and working with other companies that are unlikely to pay them. Isn't that a sign of good business practice and assessed risk? Numpties.