The following tests ask a Yes/No question. If you answer yes, you score points. At the end the total number of your points decides which category you are in.
- 0 – 10 Points – High Risk
- 10 – 20 Points – Medium Risk
- 20+ Points – Low Risk
Your answers must be supported by evidence about your company.
5. The Marketing Test (Score – 2 points)
In the last year has your business advertising spend topped £1,200?
NB, entertainment is not classed as advertising in this case.
– Copy of advertisement(s) placed
– Copy of invoice(s)
6. The Previous PAYE Test (Score – minus 15 points)
Has the current client end client engaged you:
– On PAYE employment terms
– During the last year ending last 31 March
– With no large scale alterations to your working arrangements?
The following do not count as major changes
– Doing the same work
– Working at an alternative location
– Working for a sister company (e.g. part of the same group).
– HMRC can check your employment history on their records
7. The Business Plan Test (Score – 1 point if both answeres are yes)
There are two parts –
a) Do you have a business plan including a cash flow forecast that you regularly update?
b) Do you have a company bank account aside from your personal account?
– Copy of business plan
– Copies of updates
– Company bank account statements
8. Correcting mistakes at own expense Test (Score – 4 points)
Does your company have to bear the cost of correcting any mistakes?
– Clause in contract
– Descriptions of what could go wrong
– Descriptions of how you would put it right
– Details of the cost to your business of correcting mistakes