IR35 : Business Entity Tests

I am a contractor and have been concern about the IR35 regulations for as long as I can remember. I recently took HMRC’s so-called Business Entity Tests and came out ‘low-risk’. Is this the end of the story?  

1st June 2012

No, I’m afraid not. If you read the small print of the Business Entity Tests, HMRC state that the result of the tests are not binding.

Firstly, the tests are only designed to gauge the risk that HMRC might check whether IR35 applies to you. The tests look at how your business works overall; they do not check each individual engagement/ contract you have.

Furthermore, clearly the tests cannot cover every scenario and each case would need to be considered on its own facts.

If you are concerned that IR35 may apply to you, please speak with your local TaxAssist Accountant.

By Jo Nockels

Disclaimer: Advice shared in this blog is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

Contact us today to make an appointment at your local office

Submit an enquiry