Any news/opinions on the proposed new IR35 tests?
Some very interesting material is coming out of Shout99 and other specialist contractor sites such as ContractorCalculator.co.uk after the main questions for a proposed new IR35 test were leaked on line - but without any back-up guidance.
The questions included:
- Premises used other than home or client?
- Have you had the opportunity in the last 24 months to make more money by being more efficient?
- Number of employees and what proportion they generate.
- Are you a Friday to Monday classic IR35 worker to contractor?
- Have you been unable to recover payment in excess of 10% annual turnover.
- Have you used a substitute?
However, before getting too stuck in, let me quote further from Shout99's editor, Sally Hughes: "These are 'leaked' questions, which have not been confirmed as the final version. The advice to freelancers at the moment is not to be too concerned about these until the final version is released by HMRC together with accompanying guidance notes."
Kate Cottrell from Bauer and Cottrell, a member of the IR35 Forum, commented in another thread in this group: "I recommend that you wait a week or so and you can take the real official test which should be published on HMRC's web site together with supporting guidance. This is the actual test and does not contain any additional questions that have not been agreed. The IR35 Forum will continue to meet throughout the trial period next year and you can provide input direct to HMRC or via Forum members. I will be happy to take this for you. The business entity test will be trialled against cases that have been selected for investigation. It is important to remember that this is NOT an IR35 status test it is simply feeding into HMRC risk profiling.
That was just under a month ago, but Cottrell has been advised that after a period of strenuous back-room negotiation and review, the tests and guidance are due to be published shortly after 7 May .
The PCG was involved in developing the test questions and put them forward to the OTS during the small business review and to the IR35 Forum. While HMRC has agreed to incorporate these tests as part of their risk profiling procedures, the PCG is frustrated that HMRC has ignored additional questions that would give businesses a more rounded set of risk indicators.
Is anyone else in this discussion group a party to the IR35 Forum, or can cast further light on the tests? As Kate Cottrell noted, the questions will form the basis of a 12-month pilot scheme, but it would be interesting to get the principles for opposition and support lined up for when the guidance does emerge.