An overview of the Intermediaries Legislation (IR35), specifically how it affects limited company contractors. How to determine your risk of being caught by IR35, and how to protect yourself against a potential HMRC tax investigation.
IR35 Rules
The Intermediaries Legislation was introduced in 2000 to tackle 'disguised employment', where an individual uses a limited company to carry out professional services, but works in a manner more like an 'employee'. Your take home pay will be significantly lower if your contracts fall within its scope.
Off-Payroll Rules
The 'off-payroll' addition to the existing IR35 rules was introduced across the public sector in April 2017 and the private sector in April 2021.
The 'Off Payroll' rules mean that clients (not contractors) are responsible for determining the employment status of contractors. Before this, workers themselves were responsible for this determination.
Get started with these IR35 guides
- Start with our overview of IR35 for a concise guide to the legislation.
- Read our Off-Payroll working FAQs for contractors.
- Try our IR35 tax calculator to find out the financial cost if you are caught.
- Download an IR35 contract template from Qdos
- Why you should consider taking out IR35 insurance.
Does IR35 apply to umbrella company employees?
IR35 has had a profound impact on the contracting world over the past almost 25 years. How do these tax rules affect umbrella company employees?
Off-payroll working FAQs for contractors | IR35
Clear answers on the off-payroll rules: who decides status, SDS, fee-payer, small company exemption, IR35 offset, and how to challenge a decision.
Off-payroll (IR35) – the small company exemption – FAQ
If a client meets the definition a ‘small company’ it is excluded from the Off Payroll (IR35) legislation. What does this mean for contractors and hirers?
Employer’s National Insurance hike, if inside IR35: overview
A tax expert tots up how much extra limited company contractors (and fee-payers) must fork out thanks to the chancellor’s ERNI changes.
Why a right of substitution is vital in determining IR35 status
Although a combination of factors will determine whether or not a contractor is caught by IR35, some factors carry more weight than others. Here, Martyn Valentine looks at the vital role the right to substitution plays in determining IR35 status.
Does IR35 apply to sole traders?
If you run your business as a sole trader, IR35 does not apply. Here, we explain why the Intermediaries Legislation only applies to limited company contractors.
How important is control as an IR35 status factor?
The level of control that a client exercises over a worker is a crucial factor in determining whether that worker is inside or outside of IR35.
Off payroll working – what is the IR35 offset?
A tweak to the current off payroll working (IR35) rules – known as the ‘IR35 offset’ could come into force from April 2024. This change would put an end to cases of double taxation when HMRC successfully overturns an ‘outside IR35’ determination.
IR35 history – a concise timeline from 1999 to date
The Intermediaries Legislation (aka IR35) was first mentioned in a 1999 Inland Revenue press release. Here we look at the key events which have taken place over the past 20 years, and the status of IR35 in 2020.