IT contracting is the largest sector in UK contracting and carries some of the most complex IR35 exposure. Long-running engagements, client-directed methodologies and the reality of how developers and architects actually work can push an engagement toward inside IR35 even when the contract wording looks clean.
When a client dictates the technology stack, mandates your hours, requires you to attend daily standups and directs your sprint priorities, they are exercising control, even if your contract says otherwise. HMRC looks at what actually happens, not what the contract states. In software and infrastructure roles, genuine autonomy over how you do the work is the exception, not the rule.
A contract renewal after renewal with the same client (especially if you are filling what would otherwise be a permanent headcount role) builds a picture of mutuality of obligation. The longer you have been with one client, the more important it is that we review the position properly, not just assume the original status still holds.
Most IT contractor agreements include a substitution clause, but HMRC is sceptical if a client would never actually accept a substitute, or if the contractor has never used the right. We look at whether substitution is contractually unrestricted and practically realistic, not just whether the clause exists.
If your end client is a medium or large business, the off-payroll working rules apply and they are responsible for issuing an SDS. Many IT contractors receive inside determinations, often incorrectly. We help you understand your rights and, where the determination is wrong, support the formal disagreement process.
Before you sign a new contract, we review both the written terms and discuss how the role will actually work. We identify risk areas and, where possible, recommend changes to wording or working practices that materially improve your position.
Your PSC accounts, CT600, Companies House filings and self assessment handled cleanly each year. For IT contractors we also model the corporation tax position as rates shift, particularly the marginal relief band between £50,000 and £250,000.
We calculate the optimal director salary and dividend split for your personal circumstances each tax year, accounting for your day rate, expenses, pension contributions and any other income you have.
“The SDS came back inside IR35. We reviewed the actual working arrangements, made three practical changes, and challenged it through the formal process. The revised determination came back outside. £18,000 difference.”
Composite snapshot based on client patterns. Name and figures anonymised. The tax mechanics are real.
Book a free call. We will talk through your IR35 position, your structure and whether there is anything worth changing. No hard sell, no obligation.