IR35 Business Test

Are you worried about IR35, if so please do the below test to see which Risk band you will fall under. This new business tests introduced in May 2012 to assist in deciding whether or not a worker will be caught by IR35.

Next few weeks we will discuss about some cases and most importantly how you can successfully argue against IR35.

Test scores and risk bands

This table tells you which risk band you are in.

 

Total score from the tests                       Risk band

Less than 10                                                             High risk

10 to 20                                                                  Medium risk

More than 20                                                           Low risk

 

The Tests: The Risk Factor

The 12 measures:                                                                     Points

Does the company own (or pay rent to use) business premises?

 10

Does it need Pll insurance?

2

Can the company benefit from efficiency?

1

Assistance: Does the company use employees who generate 25% of Turnover ?

35

Advertising

Previous PAYE in the same employment in the last year

-15

Business plan and company bank account

Rectify and repair bad work in own time, for no payment

4

Client risk

10

Billing by invoice

2

Right of substitution

2

Has the substitute actually been used?

20