Has anyone tried using the contractor calculator ir35 test?

[delmontebanana]

Here <snip>

For some strange reason, as long as you tick "no" to the "1.2Are you using your own limited company as the trading vehicle to invoice the agency/client for your services?" question, it doesn't matter if you are High risk in the HMRC business entity test or not, you are still outside IR35.

I imagine I'm just confused but surely working through an umbrella company lets you put a "no" in that box?

[SueEllen]

The IR35 HMRC tax tests are flawed.

Have a search on the forums and read the long threads on why this is so.

The biggest clangers are:
1. That no business operates to lose money
2. Many businesses now operate from a room or even a desk in their home. This is because the nature of businesses has changed since the 70s.

[BlasterBates]

Ignore that question, obviously if you are not paying NI then you can be investigated. That question is probably assuming if you don´t have your Ltd you´re paying NI.

[Fred Bloggs]

Ignore that question, obviously if you are not paying NI then you can be investigated. That question is probably assuming if you don´t have your Ltd you´re paying NI.

Hmmm, I'm now drawing a former employer company pension and just drawing dividends from MyCo. I'm paying zero NI.

[BlasterBates]

Hmmm, I'm now drawing a former employer company pension and just drawing dividends from MyCo. I'm paying zero NI.

IR35 only applies if you are providing personal services. The test is not from HMRC and is just a guide, but seems to be useful.

[malvolio]

IR35 only applies if you are providing personal services. The test is not from HMRC and is just a guide, but seems to be useful.

Wrong

IR355 applies if you can't prove it doesn't. Reality has very little to do with it.

[Wanderer]

For some strange reason, as long as you tick "no" to the "1.2Are you using your own limited company as the trading vehicle to invoice the agency/client for your services?" question, it doesn't matter if you are High risk in the HMRC business entity test or not, you are still outside IR35.

I imagine I'm just confused but surely working through an umbrella company lets you put a "no" in that box?

What they are trying to say is that if you are through an umbrella then IR35 isn't relevant because with a brolly you will be paying PAYE, employee's NI and Employer's NI in the same was as you would with an IR35 caught LTD company.

Any brolly's can't pay dividends because that would make it a Managed Service Company which isn't allowed.

[Qdos Contractor]

We worked on the IR35 test with Contractor Calculator.

The question about the Business Entity Tests has only been added to collect information, and does not influence the scoring. Contractor Calculator are trying to gather information that demonstrates that the BETs are cast far too wide and that many contractors who are outside IR35 are scoring high risk.