Understand the real cost of IR35 in 2026/27. See how inside vs outside IR35 affects take-home pay for limited company vs. umbrella company assignments.
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.
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.
IR35 status – what is the Mutuality of Obligation (MOO)?
One of the most important employment status factors is the mutuality of obligation. Here we explain what ‘MOO’ means in the context of IR35.
IR35 off-payroll – what constitutes ‘reasonable care’?
When clients determine the IR35 status of contractors in the private sector, they must take ‘reasonable care’ when making employment status decisions.
Off-payroll working – what is the IR35 offset?
The IR35 offset ensures tax already paid by a contractor’s company is taken into account, reducing the risk of double taxation following an HMRC challenge.
CEST – HMRC’s IR35 status tool – what it does, and why it is controversial
What the government’s employment status CEST tool is, why it came into being, why it has been criticised by contractors and IR35 specialists.
IR35 and ‘Confirmation of Arrangements’
A confirmation of arrangements letter from your client can back-up your IR35 status should it be challenged, as it confirms how you work in reality.
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
IR35 – Deemed Payment and the treatment of expenses
How to work out which expenses you can claim if your work is caught by IR35 – the 5% expenses allowance and how the deemed payment is calculated.
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.