IR35 Soft Landing Ending – Industry Trends: Part 2
As mentioned in our previous email, CEST leaves 21% of assessments undetermined. This is a similar theme that we have witnessed from all variations of online, automated assessments and unfortunately, it isn’t the only issue!
The main issues behind automated online tools:
- Online tools used for IR35 assessments are unable to provide advice and guidance, meaning a high level of understanding is needed to adequately complete the questions
- IR35 is based on legislation and case law, in no other area of legislation or business compliance would a business look to use an automated online tool, they would engage a legal advisor
- Due to their automated nature, businesses are always likely to get ‘undetermined’ results and have no way to demonstrate compliance and mitigate risk
- HMRC statistics show only 50% of CEST reviews are ‘outside’ of IR35 – with expert legal advisors, Brookson Legal has continuously averaged over 70% outside determinations
- Online tools don’t assess the written contract and only the working practices, for a thorough review both must be assessed to ensure they do not contradict
The use of an online tool may be the ‘cheap’ and ‘easy’ option, but it is fraught with danger. It leaves you with little or no protection from an IR35 investigation conducted via HMRC, along with no advice or guidance of professional indemnity insurance to rely upon! As the old saying goes – ‘Pay peanuts, get monkeys!’.
For any business that is concerned with what they have read so far get in touch, as we would be happy to offer our expertise along with a selection of free IR35 reviews to test your process.