New IR35 Guidance hot off the presses

[LisaContractorUmbrella]

I've just thought of a plan B:

My new company is called "Don't get stung for IR35 ltd"

What I'll do for you, for a small fee is:

A) I will let you rent some of my office space for your company - this same office space will be rented out to multiple 1 man bands as no one will actually use it - but the office space will exist.
B) I was supply you with a contract of work, of a size of your choising but I'd suggestabout 25+% of your expected annual turnover.
C) I will allow you to invoke your right of substitution to fulfil this work by supplying you with a resource
D) I will then not pay you for this work but worry not this is part of the plan - you won't have to pay me for C because of this.
E) I will display a nice advert for your company within your office space, for a cost of £1200 - which you can offset against the loss incurred at D).

Therefore you've rented your office space, placed an advert worth £1200, hired a sub for 25% of your yearly income but failed to be paid for this despite it being invoiced up front at fixed price and delivering before time and allowing you to earn extra income.

All in, £1000 for net payout per company.

I thank you...

[d000hg]

What a load of dross. I actually work as a genuine freelancer 100% from home on multiple simultaneous contracts, with no direction from the client and use subcontractors, etc... yet I score 2 points.

[northernladuk]

In some respects, I was right earlier. Having quickly calculated as per points, IF i go and rent a room at a mates office for less than £100pm, that would total me with 20 points (10 points, PII 2, self repair 4, Billing 2, pers service 2) and therefore low risk. Evidence is easy as everything is there in contract.

Therefore once looked at, no longer touched for 3yrs. Simples. Makes you want to be investigated...

There is a common sense element to all this you seem to be missing completely. This is guidance. Your quick get around schemes wouldn't last a second reading if you get investigated.

[JamJarST]

What a load of dross. I actually work as a genuine freelancer 100% from home on multiple simultaneous contracts, with no direction from the client and use subcontractors, etc... yet I score 2 points.

If you actually use subs, you must score more than 2, shirley?

[geoff from contracta IOM]

These 11 + style tests. It certainly does save them a lot of effort writing clear, fair and proportionate laws. I'm now going to investigate how much it would cost for my dog to be deemed "Low Risk" can I argue that he licks his B@lls without instruction from me so must be outside ?

Who would have thought that there was a need to "dumb down" tax laws which were so appallingly written in the first place, I think it's fair to assume that they will just go for everyone and let you try and prove that you're outside.

[psychocandy]

Couple of things wrong with this I can see.

1. Just because you've never not been paid is hardly an indication of anything is it? FFS thats just ****** stupid.

2. Hang on now - send your contract to HMRC and they'll give you a certificate to tell you you're in the clear for 3 years? Or they might change their mind later?

Or alternatively, you fail they're test and now they've got knowledge of you and your top of the list as an easy target. I dont think so.

All strikes me as a bit amateurish and desperate by HMRC. As someone else said, none of the underlying legislation has changed so they can make up as many tests as they like and interpret as they see fit but its still got to stand up in a court of law....

[malvolio]

How long do you think it will be before HMRC take refusal to complete them as a clear reason to investigate.

Let them. I have insurance and a 1400-to-6 win ratio on my side... IR35 hasn't changed after all, they still have to prove it.

[v8gaz]

These test are indeed a worthless waste of space. Fortunately we still have good old case law to depend on. Worth noting that these tests seem to ignore the existance of previous case law!

Anyway, I think there is someone missing from here...the same person mising from the press release condemming the tests....

[dynamicsaxcontractor]

Couple of things wrong with this I can see.

1. Just because you've never not been paid is hardly an indication of anything is it? FFS thats just ****** stupid.

2. Hang on now - send your contract to HMRC and they'll give you a certificate to tell you you're in the clear for 3 years? Or they might change their mind later?

Or alternatively, you fail they're test and now they've got knowledge of you and your top of the list as an easy target. I dont think so.

All strikes me as a bit amateurish and desperate by HMRC. As someone else said, none of the underlying legislation has changed so they can make up as many tests as they like and interpret as they see fit but its still got to stand up in a court of law....

Looks like the only way to prove to them you run a business is to run it into the ground.....

[psychocandy]

Like their scoring, 2 points for stuff they dont mind if you answer yes to do. 35 points for stuff they know most people wont answer yes to.

Although, sounds like getting a business plan together might be an idea....

Will turn up at client, invoice, repeat monthly do ;-)