Employment · HR glossary

IR35

IR35 refers to UK rules addressing tax treatment when a person provides services through an intermediary but would be an employee for tax purposes if engaged directly. Off-payroll working responsibilities depend on the engagement.

Example

A client assesses a contractor's working arrangement under the applicable rules and determines who must handle any required status decision and deductions.

What to keep in mind

Tax status and employment rights are separate questions. Use current HMRC guidance for the relevant client and arrangement; working through a company does not automatically place an engagement outside the rules.

Further reading

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