IR35 is a piece of UK tax legislation that was introduced in 2000. 

Between 6th April 2017 and 6th April 2023 however, the rules differ. Under the off-payroll working rules (a reform made to the application of the IR35 legislation), the liability for compliance sits with another party in the contractual chain such as the client or recruitment agency where applicable, unless working for a small company in the private sector. This amendment is to be repealed as of 6th April 2023 and contractors will be responsible for determining their own employment status as well as be liable for any incorrect tax payments.

Who the IR35 rules apply to:

You may be affected by these rules if you are:

  • a worker who provides their services through their intermediary
  • client who receives services from a worker through their intermediary
  • an agency providing workers’ services through their intermediary

If the rules apply, Income Tax and employee National Insurance contributions must be deducted from fees and paid to HMRC. In addition, employer National Insurance contributions and Apprenticeship Levy, if applicable, must be paid to HMRC by the person who pays the worker’s intermediary.

You can use the Check Employment Status for Tax service to help you decide if the off-payroll working rules apply.

An individual’s employment status for tax determines the taxes the worker and client, or the person paying the worker’s intermediary need to pay, depending on whether a worker is employed or self-employed.

When the IR35 rules apply:

The rules apply if a worker provides their services to a client through an intermediary, but would be classed as an employee if they were contracted directly.

A contract for the purpose of the off-payroll working rules is a written, verbal or implied agreement between parties.

The off-payroll working rules apply on a contract-by-contract basis. A worker may have some contracts which fall within the off-payroll working rules and some which do not.

For more guidance on the off-payroll working rules you can visit the UK Government website here:


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