What is IR35?
Essentially, IR35 will affect all contractors who do not meet the Inland Revenue's definition of 'self employment'. Those contractors who fall under the IR35 rules will be liable to Schedule E taxation and National Insurance (N.I), following deductions for expenses. Income will be in the form of a 'deemed payment', following these deductions.

How will I know if I am caught by IR35?
Explanation of IR35 legislation, introduced in April 2000, which affects anyone who is working via an intermediary.

Freelance UK Guide to IR35
Freelance UK's guide to IR35 and how it can affect you as a freelancer.

IR35 Case Analysis
Visit our collection of articles relating to previous IR35 cases.

Factors Determining Employment Status

The articles below will help you understand the factors as to whether IR35 may apply to you or not depending on a number of issues.

Previous status ruling
An area often overlooked is that the Inland Revenue may have already made a Status ruling at a previous visit.

Contract
As most people are now aware a Contract can be written, oral or implied. The Contract is rightly considered to be very important as it sets out the rights and obligations agreed between the Contractor and the Client.

Proper checks
There are many checks to be made to arrive at the correct status of an individual. It is not sufficient to "pick one topic" like substitution or control and base all your arguments on this one point.

Mutuality of Obligation
Mutuality of Obligation is now a common phrase when dealing with Status disputes.

Control
This is one of the main pointers used in disputes regarding employment and self-employment.

Substitution and Exclusivity
This is probably the main point now discussed amongst Contractors, as many incorrectly believe it is the only point needed in a Contract to prove self-employment.

Financial Risk and Payment
Financial risk and payment are one of the main differences between employment and self-employment.

Equipment
This is considered in many cases and can sometimes surprise you with the results.

Part and Parcel of the Organisation
Part and Parcel of the Organisation considers whether the Contractor has now become integrated into the Client Company.

Intention of the Parties
It is often stated that the intentions of the parties is important and there are a couple of questions on the Inland Revenue questionnaire relating to this point

IR35 Links
Please find our collection of useful IR35 links here...

Further Reading
Some more articles to help your understanding of IR35.

IR35 Timeline - A history of the legislation
On 9th March 1999, the Inland Revenue issued a press release detailing how "changes are to be introduced to counter avoidance in the area of personal service provision". A brief history of the legislation.

Freelancer in first 'split IR35 case'
Unprecedented ruling puts freelancers who break from specific projects in the dock.

Dec 16, 2011

Freelancers’ Questions: When do IR35 reforms take effect?
Only four months to go until the Revenue readies IR35's successor, expert says.
Dec 9, 2011

Revenue's IR35 case yield up by 100%
HMRC honed its IR35 clampdown, putting in a lot less but collecting much more.
Oct 28, 2011

What the third IR35 Forum meeting means for freelancers
Freelancing experts set to debate the IR35 status of 12 HMRC-fed scenarios.
Oct 19, 2011

Why IR35 was kept on the statute book
Deterrent is the other reason a cash-hungry government didn’t, and won’t, scrap IR35.
Sep 29, 2011

Freelance group attacks 'worthless' IR35
Official figures prove IR35 is unwarranted and has minimal yield – PCG.
Sep 23, 2011

Lib Dems say IR35 should go, not stay
'Tax rule deserves to be shelved, and then scrapped, for failing freelancers.'

Sep 1, 2011

What the second IR35 Forum minutes mean for freelancers
Employment status expert on how the taxman’s new approach to tackling fake freelancers is evolving.
Aug 25, 2011

Why many IR35 contract reviews just got more worthless
Not worth the paper it’s printed on if your IR35 review ignores the working reality - Bauer & Cottrell.
Aug 12, 2011

IT freelancer Primary Path wins IR35 battle
HMRC fails to make IR35 stick to another freelance consultant; in this case after a ‘trying time’ of eight years.
Jul 26, 2011

How freelance business Marlen Ltd beat IR35
'IR35 win shows the sense in jotting down what makes you a contractor and not an employee.'
Jul 19, 2011

Revenue loses IR35 case

Another win for the taxpayer, as HMRC falls down on mutuality and control.

Jul 18, 2011

IR35 reform spells new guidance for taxmen
Freelancer tax experts fear a new approach to IR35 won't end old habits at HMRC.
Jun 30, 2011

What the IR35 Forum means for freelancers
A fresh approach by HMRC, or the starting pistol for a slew of new IR35 investigations? Both, writes Kate Cottrell.
Jun 8, 2011

HMRC publish IR35 Forum minutes
Customer segmentation model is best, says HMRC, yet it’s not without its challenges.
Jun 6, 2011

'Genuinely in business' freelancer beats IR35 claim
Tax tribunal judges with ‘their commercial heads on’ vindicate a freelance consultant.
May 19, 2011

What the new IR35 policies mean for freelancers
IR35 review expert Kate Cottrell on the future of the intractable, unchanged legislation.
May 16, 2011

IR35 scam email targets freelancers

Malicious emails 'deploayed' to play on freelancers’ fears of the taxman.
Apr 7, 2011

'Unacceptable' if Osborne ducks IR35
Chancellor said to agree that now is the right time to act on IR35.
Mar 21, 2011

Freelancers' Questions: How might the IR35 rules change?
An expert's overview of the 4 recommended routes to tackling IR35.

Mar 14, 2011

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