The relevant questions with scoring that has any impact (10 points or more, vs non-listed ones which score 1 or 2 points):
1. Q. Premises used other than home or client?
A. Every home based business in the country fails, regardless of sector.
3. Q. Have you had the opportunity in the last 24 months to make more money by being more efficient?
A. If you're incompetent and have mispriced your service and/or product, you succeed on this one. If you competently deliver what you've been engaged to deliver and consistently estimate the effort and costs correctly - you fail.
4. Q. Number of employees and what proportion they generate.
A. Every micro business in the country fails, regardless of sector.
5. Q. Are you a Friday to Monday classic IR35 worker to contractor?
A. This is the only question that is actually relevant.
9. Q. Have you been unable to recover payment in excess of 10% annual turnover.
A. What thicko thought of this one? I have several times been unable to recover payment, and it's always been below 10% of annual turnover because I'M NOT THICK ENOUGH TO RETAIN A CUSTOMER THAT DOESN'T PAY FOR ONE MONTH OF SERVICE!
12. Q Have you used a substitute?
A. Only chronically ill or people who bid for work they don't actually want to bother doing will pass this test.
The silver lining for contractors is that almost every contractor fails which mean they want to target you all, i.e. there is no difference in the situation from what it was. The tests have no relevance, no competence, no usefulness, and are nothing other than propaganda from HMRC.
--
jacksjpt
Editor's note:
Can I add a note of caution here, 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:
See: Freelancers advised not to jump the gun on IR35 tests - Shout99, April 2012.
Susie Hughes
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