If your client is based overseas with no presence in the UK, then the IR35 rules don’t apply. If they are based overseas but do have a connection to the UK, then they have to assess your IR35 status.

In assessing a contractor’s IR35 status, end hirers are required to look at the degree of ‘control’ they have over what, how, when and where the work is done.

Substitution is a very important component when determining your IR35 status. Proving that someone else could provide the same work on your behalf (and you have the right to provide a substitute in your contract) can have a huge impact on your ability to continue working and being paid through your limited company.

A contractor’s IR35 status effectively determines their tax position with HMRC. It is assessed by the hirer completing an SDS on the contractor’s behalf.

From April 2021, if you are providing services through a Limited Company, you can’t avoid your end hirer assessing your IR35 status and providing you with a status determination statement.

If you are IR35 captured then you can continue to make pension contributions. However, the rules are different depending on...

Yes. Working through your PSC when captured prevents you from claiming travel and related subsistence costs.

No. The IR35 changes introduced in April 2021 oblige end hirers to take ‘reasonable care’ when assessing IR35 status. If reasonable care has not been taken when determining a contractors IR35 status, then the end hirer may incur fines with HMRC.

Yes. All contractors are entitled to challenge an end hirers IR35 determination. To do this, they need to undertake an independent review and put forward additional supporting evidence.

IR35 status assessments are required every time you engage with a new contract or make a change to your contract. But we recommend undertaking an independent IR35 status assessment through Brookson Legal if you disagree with your end hirers process and outcome.