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ir35

The new HMRC IR35 guidance, which includes 12 ‘business entity tests’ to help taxpayers establish the risk they face of an IR35 investigation, has been universally criticised by industry experts. So, where should contractors go from here?
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HMRC has published its much-anticipated IR35 business test online today, together with a set of typical IR35 scenarios, in an attempt to help taxpayers assess their risk of being caught by IR35.
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Once you’ve decided to become a contractor, there are a number of steps you will need to take before you can embark on a successful contracting career.
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With HMRC’s much discussed IR35 business test due to be published shortly, early copies of the test are unlikely to impress professional contractors, or business organisations, as from first inspection, the vast majority of individuals would be at a high risk of being caught by IR35 if the current scoring methods are retained.
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Doubts have been raised over the proposed IR35 business entity tests, after it has emerged that HMRC is in disagreement with many members of the IR35 Forum – the body set up to help overhaul the current IR35 regime.
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The IR35 rules remain in place after Budget 2012, although an ambiguous statement in the Budget documentation may cause further uncertainty to contractors
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The IR35 rules are still in place in early 2012, but are due an administrative overhaul which may be implemented as early as April 2012, according to the body tasked with simplifying small business taxation.
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If you provide professional services via a limited company (most typically as an IT contractor), and your contracts are caught by the IR35 rules, what expenses can your company claim against tax?
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