IR35 Business Entity Tests
28 October 2014
HM Revenue & Customs (HMRC) have announced that they will withdraw IR35 Business Entity Tests from 6 April 2015.
The HMRC statement reports that the IR35 Forum has recently reviewed the new approach to administering IR35 introduced in 2012. This review included the Business Entity Tests (BETs) that businesses can take to self-assess their risk of IR35.
The review found the BETs were not helping customers as they're:
· used very little
· not fulfilling their intended purpose.
As a result the review recommended withdrawing the BETs. HM Revenue & Customs (HMRC) has accepted this recommendation and will withdraw the BETs from 6 April 2015. Until then, businesses can continue to take the BETs if they wish or are asked to do so as part of a tendering process.