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In the week that new IR35 legislation comes into effect in the public sector, contracting expert Dave Chaplin, CEO and founder of ContractorCalculator is suggesting that HMRC’s IR35 status tool could be facilitating tax avoidance. This is based on the analysis of over 558 results that contractors have obtained from HMRC’s Employment Status Service tool compared with ContractorCalculator’s IR35Testing tool.

ContractorCalculator’s tool asks 101 questions before giving an instant IR35 review result and also asks that if the contractor used HMRC’s ESS tool, what did it tell them?

Contractor Calculator has answers from 558 contractors and has compared the results and discovered some surprising and worrying conclusions:

- 29% of contractors are told by HMRC that they pass IR35, when the IR35Testing tool fails them. The majority of these (19%) are also really strong...

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