IR35 Ask an Expert - Business Entity Tests

IR35 specialist Seb Maley answers your questions regarding the contracting profession and the potential pitfalls of the IR35 legislation.

Question: I took the business entity test and score ‘high risk’, will that mean that I will be caught by IR35? What can I do to prevent this?

 

Answer: The Business Entity Test is designed as a self-assessment tool for contractors to establish how ‘at risk’ they are from an IR35 perspective. The results of the test have no direct correlation with a contractor’s actual IR35 status. Indeed, the vast majority of our contractor clients will be either ‘high’ or ‘medium’ risk on the BET, but still genuinely outside IR35. Therefore, being ‘high’ risk in the BET is nothing to worry about in itself providing your contract and actual working practices are compliant.

 

It’s worth noting, however, that if you do happen to come out as ‘low risk’ on the BET and can provide evidence to back this up, HMRC should close down any IR35 enquiry straight away.

By Troy Stevens

By:Troy Stevens

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