Overview of IR35

IR35, also known as the off-payroll working rules, is a set of tax legislation designed to ensure that individuals working like employees but through an intermediary (such as a limited company or personal service company) pay broadly the same Income Tax and National Insurance as employees.

These rules apply if:

You provide services to us as a client through your own intermediary.

You would be considered an employee if the services were provided directly.

Responsibility for determining whether IR35 applies depends on the size and sector of the client:

Public sector and medium/large private sector clients are responsible for determining the worker’s status.

Small private sector clients leave responsibility with the worker’s intermediary.
Understanding your IR35 status is crucial for compliance and avoiding penalties.

For full guidance on IR35, including who the rules apply to, when they apply, and how to assess employment status, visit the official HMRC page for information on understanding off-payroll working (IR35).

For information related to Payroll Services, including how payroll is managed and who to contact for payroll-related queries, please view our budgets and spending page.