17 articles

IR35 Status

Practical guides on ir35 status for UK contractors and PSC directors.

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IR35 Status
Off-payroll working rules hub: everything contractors need to know
The off-payroll working rules sit in Chapter 10 of ITEPA 2003 and shift responsibility for IR35 status from the contractor to the end client when that client is medium or large. This hub covers every aspect of the regime: what off-payroll working is, the public and private sector timelines, the small company exemption (with the updated 2025 thresholds), how the Status Determination Statement works, deemed direct payment mechanics, overseas clients, the April 2024 offset, and the self-assessment question about employment income from inside off-payroll engagements.
14 July 202613 min read
IR35 Status
How to Challenge an Inside IR35 Determination
Receiving an inside IR35 Status Determination Statement does not mean the matter is closed. Under ITEPA 2003 s.61T, every contractor has a formal right to challenge the determination through the client-led disagreement process. This guide covers the evidence to gather, how to write a compelling representation, what the 45-day process involves, and why blanket determinations are a strong attack line.
12 June 202612 min read
IR35 Status
Deemed Employment Payment: How Your Tax Works Inside IR35
When a contractor is caught by IR35, PAYE and National Insurance are collected through a deemed employment payment. Exactly how that calculation works depends on whether Chapter 8 or Chapter 10 of ITEPA 2003 applies, and the two regimes operate very differently. This guide sets out the mechanics of each, the key distinctions and what ultimately lands in your personal service company.
12 June 202612 min read
IR35 Status
Fee-Payer Liability Under IR35: Who Pays if the Status Is Wrong
Under the off-payroll working rules, the fee-payer (not the end client) operates PAYE and National Insurance on inside-IR35 payments. But that liability can shift to the end client when an SDS is invalid, reasonable care was not taken, or debt-transfer provisions are triggered. This guide explains who the fee-payer is, when liability moves up the chain, and what the 2024 set-off rules mean for the cost of getting it wrong.
12 June 202612 min read
IR35 Status
How to Use HMRC's CEST Tool and What the Result Means
HMRC's Check Employment Status for Tax (CEST) tool, updated 30 April 2025, is the most widely used first screen for IR35 status. Used carefully and honestly, it generates an audit document HMRC will stand behind. But a CEST result is not a guarantee, and its treatment of mutuality of obligation is narrower than the case law, so contractors and clients who rely on it alone are taking a risk.
12 June 202615 min read
IR35 Status
Inside IR35 Take-Home Pay: How the Deductions Actually Work
An inside IR35 day rate is not the money you keep. This guide works through the exact deduction order in 2026/27, from the assignment rate through employer NIC, employee NIC and income tax, with two full day-rate examples. It explains why the employer's costs come out of your rate, not your client's pocket.
12 June 202616 min read
IR35 Status
Inside IR35: What It Means and How It Affects Your Pay
Being caught inside IR35 does not just change your tax bill; it changes the entire mechanism by which you are taxed, from deemed payment calculations to employer National Insurance landing on your assignment rate. This guide explains exactly what happens to your income, what you can still claim, and whether staying in your PSC or moving to an umbrella is the right call.
12 June 202617 min read
IR35 Status
IR35 Contract Review: What to Check Before You Sign
A contract that reads well on paper can still put you inside IR35 if the working practices tell a different story. This guide walks through every clause that matters: substitution, control, mutuality of obligation, financial risk and the steps to take once you have a clean written contract.
12 June 202613 min read
IR35 Status
The IR35 small company exemption: 2026 thresholds and timing
Chapter 10 of the off-payroll working rules does not apply where the end client is a small company. Thresholds were raised in 2026 but the timing lag means most contractors should still assume their medium clients are in scope for 2026/27. This guide covers the current test, the two consecutive years rule, and the 6 April 2027 exit timing.
12 June 202615 min read
IR35 Status
The IR35 Status Tests: Control, Substitution and Mutuality
Every IR35 determination turns on three tests drawn from a 1968 court case and refined by a string of appellate decisions running up to the Supreme Court in 2024. This guide explains the framework structure, gives the control test the detailed treatment it deserves, and shows where the substitution and mutuality tests fit in.
12 June 202613 min read
IR35 Status
Mutuality of Obligation: the IR35 Test Clients Get Wrong
Mutuality of obligation is the most misunderstood of the three IR35 status tests. The Supreme Court's 2024 ruling in PGMOL confirmed that MOO can exist within a single engagement and that finding it does not, by itself, settle status in favour of employment. This guide explains what MOO actually requires, how PGMOL changed the analysis, and why the CEST tool's treatment of MOO is narrower than the case law.
12 June 202613 min read
IR35 Status
Off-payroll working rules: who determines status and who pays
The off-payroll working rules (Chapter 10 ITEPA 2003) shift responsibility for IR35 status from the contractor to the end client when the client is medium or large. This guide explains how the Status Determination Statement works, who operates PAYE, the debt-transfer chain, and the April 2024 set-off that protects contractors from double taxation.
12 June 202615 min read

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