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Newsletter 443: End of controversial IR35 Business Entity Tests

by Newsletter Editor at 10:20 11/11/14 ( Shout99 Newsletter)

Two years ago the so-called Business Entity Tests were introduced via the IR35 Forum as a means of clarifying and de-mystifying the confusion and chaos which has existed around IR35 since its introduction more than a decade ago.

Even at the time of the introduction of BETs, opinion among members of the Forum which introduced them was divided. Part of the problem was their purpose was never fully understood. They were intended for contractors to assess their *risk* of an IR35 investigation. However, they were used - with the Government's blessing for judging their own contractors - as a means of identifying a contractors status or compliance with IR35. The final nail in their coffin came in a form of a condemnation from the people who had introduced them. It was then only a matter of time before they were 'voted out', and now HMRC has consigned them to the growing heap of IR35 spin-off debris. But, that has led to some quarters wondering ....what happens next? HMRC abolishes controversial Business Entity Tests Welcome for end of Business Entity Tests..but what follows? And, in another move to sort out the Civil Service and its own contractors, public sector workers who take redundancy and then return to a similar position as a contractor or employee will need to repay their redundancy payments, according to proposals from the Government. Long term IR35 watchers will recall that IR35 was introduced to prevent this 'Friday-to-Monday' scenario which involved a quick switch from employee to contractor. Seems nothing changes, and now redundancy clawback is deemed a deterrent. Civil servants who return as contractors face redundancy clawback *************** News from Shout99 *************** Accountant on suspicion of sub-contractor fraud Ten things HMRC wants you to know about tax avoidance schemes Jail for directors of bogus IT contract immigration scam 'Onerous' record-keeping regulations placed on agencies HMRC pay to informants rises to record high Contractor pay: 10 highest-paying assignments Upfront tax avoidance demands top £250m Paper tax attract a fine from November Call for policies for self-employed ****************************************************** Advertisement - Protection against IR35 investigations (FO35) ****************************************************** Advertisement Protection against disputes with HMRC on tax matters, including IR35, is available for £116.00 a year. Freelancers Outside IR35 (FO35) is a complete operating system for small businesses with guidance on compliance; draft contracts; a helpline; status assessments; and representation by Qdos Consulting in the event of a dispute with the Revenue on tax; VAT; or IR35 issues. FO35 is available online for immediate cover for £116.00 a year. For more information or to order, see...... Freelancers Outside IR35 ************ Also in Shout99 ************ Ask An Expert, our expert panel answers questions from freelancers. Letters from Freelancers opens up discussions on a number of subjects of interest to freelancers, including recommendations for contract search sites. The Clubhouse is an area for 'off-topic' discussions. ******** Twitter ******** For the twitters and tweeters among our readers, you can follow Shout99's headline news on Twitter. ************************ Shout99 - Newsletter ************************ Please forward this newsletter to any other freelancer or small businesses who may be interested in news and information related to running a small business. You can subscribe to receive your own free copy of this newsletter on the home page of Shout99. Susie Hughes, Editor Newsletter 443 Shout99 - the network for freelancers Tweet

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