Inside or outside IR35?Understand your position.
IR35 is assessed contract by contract. A single status for all your engagements does not exist. We review your specific contract and how you actually work.
IR35 contract review: what it covers.
Our IR35 contract review goes beyond running your paperwork through the CEST tool. We look at three things together.
Contract terms
We read the written contract for clauses that create employment-type obligations, including direction over how the work is done, restrictions on substitution, and expectations of continued engagement. We flag anything that creates risk and recommend specific wording changes where the position can be improved.
Actual working practices
Contract wording is not enough on its own. HMRC looks at how the engagement works in practice. We discuss how you actually work with your client, including who directs your day-to-day work, whether substitution is genuinely possible, and whether there is an expectation of ongoing work on either side.
The three IR35 tests
We assess control, substitution and mutuality of obligation for your specific engagement. Where the position is borderline, we tell you which test is the weak point and what would need to change in practice (not just on paper) to improve the position.
What you get back
A written opinion on your status covering the three tests, a summary of the risk factors identified in your contract and working practices, and specific recommendations on what (if anything) needs to change. For medium and large end clients, we also explain your rights around the Status Determination Statement and the formal disagreement process.
How IR35 status is determined.
HMRC and the courts use three primary tests to determine whether a contractor is genuinely self-employed or a disguised employee. Your contract wording matters, but actual working practices matter more.
Control
Does the end client control how, where and when you work? Or do you have genuine freedom to decide? The more control the client exercises, the more the engagement looks like employment.
Substitution
Could you send a suitably qualified substitute to do the work in your place, and would the client accept them? A genuine right of substitution points toward self-employment, but it must be real, not just a clause in a contract.
Mutuality of obligation
Is the client obliged to offer you work, and are you obliged to accept it? In a genuine contract-for-services arrangement, neither obligation exists. If both do, the engagement looks more like employment.
Inside vs outside IR35: the tax difference.
| Area | Outside IR35 | Inside IR35 |
|---|---|---|
| Who pays tax and NI | PSC pays CT; director pays income tax on salary + dividend tax | Fee-payer deducts income tax + employee NI before paying PSC |
| How you receive payment | Gross fee into PSC, then salary + dividends | Net of income tax and employee NI deductions |
| Corporation tax | Applies to PSC profit in the normal way | No CT on the deemed payment income |
| Dividend tax | Taxed at 10.75% / 35.75% / 39.35% (2026/27) | Not applicable (income treated as employment income) |
| Allowable expenses | Company expenses deductible in the usual way | Very limited (travel and subsistence restricted) |
| Pension contributions | PSC employer contributions are highly tax-efficient | Possible but more complex via PAYE arrangements |
When the rules changed, and who they affect.
- April 2017
Off-payroll rules introduced for public sector engagements. End clients (not PSCs) became responsible for determining IR35 status.
- April 2021
Rules extended to medium and large private sector businesses. Small companies remain exempt. The PSC still self-assesses.
- Now
If your end client is a medium or large business, they issue a Status Determination Statement (SDS). You have a right to challenge it through a formal disagreement process.
Small company exemption: if your end client meets two of the following criteria (turnover not more than £15m, balance sheet not more than £7.5m, fewer than 50 employees, for financial years beginning on or after 6 April 2025), the old rules apply and your PSC self-assesses its own IR35 status. Note the timing lag: a previously medium client cannot fall out of scope before 6 April 2027.
Not sure where your contract sits?
Book an IR35 contract review. We look at your contract wording and your actual working practices, apply the three tests, and give you a clear written opinion on your position.
We cover all contractor sectors. See who we help.