IR35 legislation applies to anyone who supplies their personal services to end hirers via their own limited company, sometimes known as a ‘PSC’ (Personal Service Company).

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. There are many different options available to contractors captured by IR35 for their current contract. Depending on your circumstances, closing your limited company down may be a preferable option, but it is not essential.

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. You can work through your limited company (PSC) or under an umbrella company. You may wish to seek guidance as to which will be the best solution for you.

IR35 legislation states that an end hirer must take ‘reasonable care’ in assessing all contracts, to establish whether the individual would be seen an employee when carrying out the necessary work. If they fail to take reasonable care, the end hirer will be responsible for calculating the deemed direct payment, paying it over and reporting the tax and NICs that result.

When IR35 was introduced in 2000, it was the contractor’s responsibility to determine their IR35 status. This was changed in 2017, when end hirers in the Public Sector became responsible for assessing a contractors IR35 status instead.

There is lots of established IR35 case law, much of which specifically looks at whether an individual was a ‘disguised employee’ or not.

From April 2021, it is the end hirers responsibility to assess IR35 status on behalf of you, the contractor. So even if you are a director of your own limited company, you no longer have that responsibility moving forward.