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.
- For IR35 news and case updates, see our dedicated coverage on IR35 Update.
Is it worth keeping your limited company if caught by the IR35 off-payroll rules?
If you are caught by the off-payroll IR35 rules, you may decide that there is no point keeping your limited company active. This isn’t necessarily the case
Free IR35 contract template downloads for contractors
To protect yourself against IR35, you need to be sure that the wording of your contracts (and the way you actually carry out your contract work for the client) show that you are genuinely ‘self employed’. Here we show where you can download a sample contract template.
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.
IR35 – are you in business on your own account?
To ensure that any contracts you undertake are not deemed inside IR35, you need to be able to demonstrate that you are not a disguised employee.
What happens if you’re selected for an IR35 enquiry?
There is a huge amount of information available about IR35 and how to protect yourself. But what happens if you are selected for an investigation?
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?
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.
How should a contractor challenge an IR35 determination?
Many contractors are wondering how they can mount an IR35 challenge post-April 2021. Is there any way to successfully appeal an inaccurate or even non compliant IR35 determination?