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.

Government sets IR35 review terms
Tax simplification unit told to come up with alternatives to IR35.
Jul 26, 2010

IR35 review won't report until 2011
Tax simplification chief will reveal IR35's successor in time for the next Budget.

Jul 22, 2010

No evidence of new stance on IR35
Government officials tell FreelanceUK that a review is the only course officially on the table for IR35.
Jul 8, 2010

IR35 - Why it should stay

Part 2 of 2: The case for keeping IR35, by freelance advisory Qdos Consulting.
Jun 21, 2010

Government seeks to replace IR35
'Simpler measures' are incoming to substitute, not scrap, IR35, says coalition.
May 21, 2010

Scrapping IR35 is not the answer, say Tories
'Unintended consequences' will keep IR35 in business under a Conservative government.
Apr 21, 2010

Tories pledge to review IR35

Freelancers get a landmark pledge from the Conservatives.

Apr 8, 2010

Freelancers' Questions: Can a 2-week gap beat IR35?
IR35 expert helps a budding freelancer with 'Friday to Monday' intentions.
Mar 31, 2010

Twitter takes the pith out of classics
Barriers to classic literature are crumbling, 140 characters at a time.
Nov 6, 2009

BBC regulars flock to freelance contracts
Beeb accused of ushering its long-serving faces into freelancing for its tax saving.
Oct 5, 2009

IR35 tax take falls short at £1.5m
Revealed: the state’s 'pitiful' annual return from enforcing IR35.
May 27, 2009

What triggers an IR35 tax investigation?
Experts reveal how the taxman decides who to investigate under IR35.
Mar 4, 2009

IT freelancer loses IR35 appeal
A freelance contractor must pay for his 'unassailable' relationship of employment.
Sep 10, 2008

Freelancers accused of 'IR35 ignorance'
Ignorant or not, two out of three freelancers aren't bothering with IR35.
Aug 28, 2008

'Scrapping IR35 is not Tory policy'
Tories: it’s the policy group – not us – that want to kill IR35.
Aug 22, 2007

Tories would scrap IR35
The Conservative party is tipped to tackle a trio of freelancer taxes.
Aug 15, 2007

Brown told to make business less taxing
A chorus of enterprise voices urge the chancellor to issue relief on taxation.
Mar 13, 2007

Pre-Budget Report: what freelancers can expect
For what it omits, Brown’s PBR may be less painful than freelancers anticipate.
Nov 6, 2006

Tax fiasco: HMRC utterly fails to understand IR35
Is the Intermediaries Legislation on the way out? 'Don’t listen to the rumours', experts tell Freelance UK.
Sep 8, 2006

'Rogue' advisors cash-in on IR35 fears
Whether hapless or coaxed, Ltd Co. owners are signing up to inept ‘solutions.'
Jun 23, 2006

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