HMRC publish more IR35 guidance

HMRC have published guidance on business entity tests for the purposes of the intermediaries legislation, otherwise known as IR35.

This still controversial legislation is intended by HMRC to capture ‘disguised’ employment, largely amongst contractors and consultants.

The new tests allow taxpayers to work out which risk band they are in using a points based system. Points are awarded based on responses relating to business premises, personal indemnity insurance, efficiency, assistance, advertising, previous PAYE, business plan, client risk, billing, right of substitution, and actual substitution. 

The tests are voluntary, and perhaps a little arbitrary but certainly give some idea as to how HMRC’s thinking is developing in this area.

If you would like to know more about IR35 may affect you please contact Dave Rimmer 0151 228 8977