Friday to Monday test

[mickey]

Hi all,

What factors do HMRC consider as a part of the Friday to Monday test? I'm being told the approach is to ignore all intermediaries and look at who the end supplier and the end client is, which makes the contract review a moot point...

[eek]

Hi all,

What factors do HMRC consider as a part of the Friday to Monday test? I'm being told the approach is to ignore all intermediaries and look at who the end supplier and the end client is, which makes the contract review a moot point...

If you are a permie on Friday and a contractor in the same place on Monday what has changed except for either:

You have moved to a more tax friendly money
They have moved you to a less secure probably tax friendlier model for them...

So meh, I think its only fair...

[Wanderer]

What factors do HMRC consider as a part of the Friday to Monday test? I'm being told the approach is to ignore all intermediaries and look at who the end supplier and the end client is, which makes the contract review a moot point...

Unusually for HMRC, this test is quite concise. If you fail this test then you are going to have a very difficult time proving that you are outside IR35 unless you are really running a business (eg, with your own premises and employing sub contractors to do the work for you)

http://www.hmrc.gov.uk/ir35/guidance.pdf

The Previous PAYE test

Has the current end client engaged you:

• on PAYE employment terms
• within the 12 months which ended on the last 31 March
• with no major changes to your working arrangements?

If you are doing the same work, the answer to this question is Yes.

Working at a different location does not count as a major change.

If you were working for a company that is connected to the current end client, that counts as working for the current end client. For example, if the two companies are part of the same group.

[jamesbrown]

There's an element of the Business Entity Tests that focuses on this, as indicated above. However, the BETs have no legal standing in terms of status and there is no "Friday to Monday Test" in the legislation itself, only the implications your arrangement has in terms of being considered a disguised employee, for which the same criteria are applied to all arrangements, notably in terms of MoO and D&C. The contract is not a moot point if it doesn't pass inspection, but the actual working practices are what matters and will likely imply D&C and MoO (because they did in the past, by definition).

[GB9]

Is the client ready to treat you as a supplier? You may see yourself differently, but if the client treats you the same you will struggle to stay outside IR35.