IR35 & Off-Payroll Working
Clear, practical advice on IR35 and the Off-Payroll Working Rules for businesses.
The IR35 and Off-Payroll Working Rules place significant obligations on businesses engaging contractors through intermediaries, such as personal service companies. Determining employment status correctly is essential, as getting it wrong can result in tax liability, penalties and wider commercial risk.
We support businesses in making and documenting status determinations, reviewing contractor arrangements and implementing compliant processes. Our advice is practical and aligned with how your business operates, helping you manage risk while maintaining flexibility in your workforce.
IR35 Status Assessments
Determining whether an engagement falls inside or outside IR35 requires careful consideration of both the written terms and the reality of the relationship.
We advise businesses on employment status for tax purposes, including the key factors that affect whether a contractor is likely to be treated as employed or genuinely self-employed. Our assessments are designed to help you make informed decisions and understand where the main areas of risk lie.
This can be particularly valuable where contractor arrangements have developed over time or where working practices do not neatly match the underlying paperwork.
Status Determination Statements & Compliance Processes
For businesses caught by the Off-Payroll Working rules, issuing a compliant Status Determination Statement (SDS) is an essential part of the process.
We advise on preparing SDSs that clearly set out the status conclusion and the reasons behind it. We also help businesses build internal processes that support consistent decision-making and demonstrate reasonable care.
A clear and defensible process can significantly reduce the risk of challenge and help your business manage contractor engagements with greater confidence.
Reviewing Contractor & Consultancy Arrangements
IR35 risk often arises where contractor documentation and day-to-day reality do not match.
We review consultancy agreements and contractor arrangements to identify inconsistencies, practical risk areas and terms that may undermine your intended status position. We also advise on improvements to documentation and working practices to better support the structure you are seeking to put in place.
Our focus is on helping you ensure arrangements are not only well-drafted, but workable in practice.
Supply Chain & Engagement Audits
Where contractors are engaged through agencies or other intermediaries, it is important to understand how responsibility sits across the supply chain.
We help businesses audit contractor arrangements and review how engagements are structured across different entities. This includes identifying where obligations may sit, whether SDS requirements are being met and where there may be gaps in process or documentation.
This type of review can be particularly useful for businesses engaging multiple contractors or using layered recruitment models.
Training & Practical Support
IR35 compliance often depends on the decisions made by HR, procurement and hiring managers at the point of engagement.
We provide practical training and tailored support to help internal teams understand the off-payroll rules, identify risk factors and follow the right processes when engaging contractors.
This helps businesses apply a more consistent approach and reduce the risk of issues arising from informal or inconsistent decision-making.
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IR35 Compliance in Practice
Since the introduction of Off-Payroll Rules, we’ve been reviewing what businesses have been doing in practice to ensure their compliance.
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Frequently Asked Questions
Find answers to your most pressing questions about our services and processes.
What is IR35?
IR35 is a tax regime designed to prevent individuals from avoiding employment taxes by providing services through an intermediary, commonly a personal service company, where the underlying relationship is more akin to employment.
What are the off-payroll working rules?
The off-payroll working rules require medium and large businesses to assess the status of contractors and determine whether IR35 applies. If it does, the business may be responsible for deducting tax and National Insurance.
Who is responsible for determining status?
In most cases, the end user (the business receiving the services) is responsible for making the status determination and issuing a Status Determination Statement.
What are the risks of getting IR35 wrong?
Risks include liability for unpaid tax and National Insurance, penalties from HMRC and potential disputes with contractors.