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As a leading FCSA Accredited Umbrella Company we know IR35 inside out. Whether you are a contractor, freelancer, recruitment agency or engager we’ll help you to quickly understand IR35 – with user-friendly videos, blogs, articles and guides.

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IR35 Status Testing Tool

This IR35 testing tool from IR35testing.co.uk enables workers, agencies and clients to independently evaluate the IR35 status of their contracts, based upon their responses and IR35 case law.

Just complete a few details and we will send you login details to take the test.



    IR35 Videos

    THE EASY GUIDE TO IR35

    To help you understand IR35, our plain-english video guide provides all the information you need to make sense of the IR35 rules and how they may impact you and your business.

    IR35 isn’t the easiest or most exciting of topics, but we cut through the complexity to provide you with an understanding so you can decide what is right for you.

    The Key Employment Test Areas

    Mutuality of Obligation

    Mutuality of obligation’ exists when an agency or client has to offer work to an individual under the terms of the contract and the individual has to take it.

    Personal Service

    ‘Personal service’ hinges on whether the personal service of the worker is required, or if someone else can be sent to carry out the work in their place.

    Control

    This refers to the degree of control a client has over what, how, when and where a worker carries out a job. In case law this is called a master / servant relationship.

    IR35 FAQ’s

    IR35, properly known as the “Intermediaries Legislation”, is a set of rules put in place by HMRC to tackle the “disguised employment” of contractors supplying their services to clients via an intermediary, such as a personal service company (PSC).

    In the eyes of HMRC, “disguised employees” would have an employment relationship with their client, if you removed the fact they have a limited company.

    You only need to concern yourself with IR35 if you are supplying your services through a limited company, or are engaging contractors who do. IR35 has no impact whatsoever on PAYE employees, umbrella company employees, or sole traders, including if you are CIS.

    If your contract is determined as “caught” by IR35, it means that your relationship with your client would be one of employment if it were not for the fact that you are providing your services through a limited company.

    You are deemed as an employee for the purposes of tax and NIC, but not employment rights. Your pay should be net of PAYE tax and NIC.

    For public sector contracts, IR35 is determined by the client (public sector body), rather than the contractor. If the client decides that the contract is within IR35, then the party paying the personal service company – the “fee-payer” – must tax the contractor at source, exactly as they would an employee on their payroll.

    Currently in the private sector it is the responsibility of the personal service company director to determine their IR35 status and apply appropriate taxation on their income if their contract is caught by IR35.

    From 6th April 2021 this will no longer be the case. From that date, the way IR35 is applied will be the same across the public and private sectors, making it the responsibility of the engager to determine IR35 status and communicate this down the supply chain in a “Status Determination Statement”. 

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