IR35’s digital tool has been at the center of the public sector ‘off-payroll’ policy debate for a considerably long time. Once again it is in the news, because not only is it about to be launched but also it has been renamed as Employment Status Service (ESS).
The aim of the ESS is to determine whether or not the assignments of PSC workers fall inside or outside the scope of IR35 in HMRC’s view. The tool is looking to ask 55 questions based on case law. HMRC is also quite clear on standing behind any result produced by the ESS, unless of course it is fraudulently inputted.
Questions the ESS will ask in order
It begins by deciding who you are; an engager, agency or worker. Then it gathers information on your assignments. Once it has received the basic information from you, it moves on to ask audience-relevant questions on key areas such as Supervision, Direction, Control, and business setup.
Your answers are bound to typically land you either of the 3 conclusions listed below:
- Inside IR35
- Outside IR35
- Seek further guidance
The tool will be not be launched before March, and only time will tell how successful or not it is among PSC workers.