HMRC’s online IR35 assessment tool is finally here!
Whether you’re working in the public or private sector this tool will determine if your assignments fall outside of the intermediaries legislation (known as IR35). This is in beta test phase currently but HMRC has stated clearly that they will stand by the decisions given, so ensure you keep a printout!
You might be pleasantly surprised by the line of questioning, as it seems heavily weighted towards whether you’re able to substitute your services (apparently regardless of whether you actually have) and are liable to pay the replacement – if you can answer yes, you seem to bypass the questions about control and are likely to pass. If you can’t offer substitution of labour you’re then questioned about the control you have over the services you’re delivering and the equipment required to complete the work – if you can’t satisfy these requirements you still won’t get a clear ‘Fail’ but will be told the tool is ‘Unable to determine the tax status of this engagement’ and asked to contact HMRC for more information and a final determination, as has been the case with HMRC’s previous tools.
So, perhaps not the nightmare scenario that many have been fearing.
Please let us know how you find this new tool…