HMRC Produce New Guidance on IR35

After a long period of discussion HMRC have published new guidance on IR35 under the heading – Intermediaries Legislation (IR35): Business entity tests.

The guidance adopts a risk approach to identifying cases of IR35 and sets out a series of 12 business entity questions, awarding points to the outcomes.  In this case points mean prizes as the more points a business scores, the less risk of liability under the IR35 provisions. 

The first fact to note is that there has been no change to the law on IR35.  HMRC are, however, taking a different stance in the matter and their conclusions are written as if they are statements of fact, which they are not.  They are not embedded in law and are merely HMRC’s indicators of where they perceive that trouble lies.  The points awarded to the answers may be challenged but the fact is that the guidance is the view of HMRC and therefore we must take note of their thinking.

The link to the full document is; 

If you would like to discuss any aspect of this further please contact our Business Tax Director, John Caithness, in the first instance.










7 June 2012