Your essential IR35
If you’re confused about IR35 and what it means for you, we’ve got the answers.
The Home Of
As a leading FCSA Accredited Umbrella Company we know IR35 inside out.
Whether you are a contractor, freelancer, recruitment agency or engager we’ll help you to quickly understand IR35 – with jargon-free explainer videos, blogs, articles and guides.
In this series of bite-sized videos, we explain what IR35 is, what it means for you as a contractor or recruitment agency and how the 2017 and 2021 reforms to the off-payroll working rules may impact you.
Do I need to worry about IR35?
You only need to concern yourself with IR35 if you are supplying your services through a limited company, or are engaging contractors who do. IR35 has no impact whatsoever on PAYE employees, umbrella company employees, or sole traders, including if you are CIS.
What does it mean if my contract is "inside IR35"
If your contract is determined as “inside” or “caught” by IR35, it means that your relationship with your client would be one of employment if it were not for the fact that you are providing your services through a limited company.
You are deemed as an employee for the purposes of tax and NIC, but not employment rights. Your pay should be net of PAYE tax and NIC.
What are the IR35 rules in the public sector?
For public sector contracts, IR35 is determined by the client (public sector body), rather than the contractor. If the client decides that the contract is within IR35, then the party paying the personal service company – the “fee-payer” – must tax the contractor at source, exactly as they would an employee on their payroll.
What are the IR35 rules in the private sector?
In the private sector, as of 6th April 2021, if you are engaged by a medium or large company (as per Company’s House definitions), it is the responsibility of the engager to determine IR35 status and communicate this down the supply chain in a “Status Determination Statement”.