IR35: business entity tests

Tests and example scenarios to help work out the risk of IR35 intermediaries legislation applying to you - being withdrawn 6 April 2015.

This publication was withdrawn on

This publication was originally archived on 6 April 2015.



HM Revenue & Customs (HMRC) will withdraw the business entity tests (BETs) and example scenarios from 6 April 2015, and there are no plans to replace them.

The IR35 Forum reviewed the (BETs) and found that they were not helping customers as they’re:

  • used very little
  • not fulfilling their intended purpose

You can continue to take the BETs if you wish or are asked to do so as part of a tendering process until 6 April 2015.

The BETs won’t be taken into account when HMRC opens an IR35 enquiry on or after 6 April 2015. However, if HMRC opens an enquiry before then, and you can show that you have taken the BETs with an outcome outside IR35 or in the ‘low risk’ band, then HMRC will close the enquiry. They also won’t open another IR35 enquiry for 3 years if the information provided is accurate and circumstances (in particular working arrangements) don’t change in that time.

When HMRC has previously closed an enquiry based on a result of the BETs then they won’t open another IR35 enquiry within the 3 year period previously notified to you.

Where HMRC closes an IR35 enquiry based on the BETs results, you should keep those results and any evidence relied on to take the tests for at least the 3 year period involved.

Published 9 May 2012