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IR35 for Contractors

IR35 for contractors

Understanding the off-payroll rules

We take a look at some of the most frequently misunderstood areas of IR35 for contractors and arm you with the knowledge you need to be confident the IR35 status determination is correct.

How does IR35 affect contractors?

Contractors often face the likelihood of end clients opting to put them inside IR35 as there are less tax risks involved. However, this isn’t always the best option for all parties involved.

There is also a lot of jargon that surrounds IR35 – would you know an SDS from SDC and MOO from SOW?  Read on and we will explain all.

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What do you need to know?

There are some key areas for consideration when you are taking on a new engagement. Take a look below.

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Need help with your status determination statement (SDS)?

There are a number of obligations on the end client from the IR35 off-payroll reforms, including providing a status determination statement (SDS) prior to the first payment. This should state clearly if the contract is deemed to be inside or outside IR35.

Got some questions on SDS? See our frequently asked questions here

SDS FAQs

Unhappy with your SDS outcome? End clients are required to provide a formal process for you to challenge the SDS.

If you have been presented with an inside IR35 status and disagree with the determination, it is well within your rights to raise a dispute challenging this decision.

But what is the process for challenging a status determination statement? We have put together a handy guide with tips on how to approach your dispute and the process that should be followed.

Read our guide here >> Contractor disputes: Challenging an IR35 status determination statement

Key points

Contractors – take note of these key points

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Blanket bans vs. blanket assessments

Know the difference…

The terms blanket bans and blanket assessments are often used interchangeably, but are two distinct approaches.  More importantly, one is legally allowable, the other is not as it does not demonstrate reasonable care in making the determination.

Our handy guide shows you at a glance the fundamental differences between blanket bans and blanket assessments.

Read more
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Inside vs. outside IR35

Whether you’re facing an inside or an outside determination, there are certain considerations to address.

Questions range from the tax risks when you move to an inside contract from an outside contract, to supervision, direction and control.

It’s also important to address other points which could impact your status.

We answer your questions here.

Read here
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Got questions on Mutuality of Obligation (MOO)?

Heres where and how MOO comes into play.

Mutuality of obligation is an important factor to consider, but under what circumstances?

We explore your top questions.

Explore the conecpt of MOO here


Do I have to be paid on a fixed price basis to be working outside IR35 or can I be paid on a daily/hourly rate?

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Whether you simply have a quick question, or were seeking a more formal conversation to discuss your tax needs, drop your details here and we will be in touch! Alternatively, you can contact us on +44 (0)20 3468 0000.