IR35 Guide

4 May 2009

How a Contractor can assess if they are caught by IR35:

The key points in assessing whether you are outside the scope of IR35 are whether you can answer YES to the following points:

  • Does your contract refer to you as a contractor?
  • Can you perform the work at the location of your choice?
  • Do you use your own equipment (for example does the contract say you can use your own laptop)?
  • Can you choose your own hours?
  • Are you receiving a fixed fee for completing a set task? (and are therefore responsible for how you go about completing the task)
  • Can you get someone else to perform the service at your own cost? (i.e. the contract isn't for your individual employment but for the delivery of a service)
  • Are you responsible for your own costs? If you are caught by the scope of IR35 then most clients or recruitment agencies will require that you either set-up your own limited company or join an Umbrella Company.

For a FREE IR35 review please call PayMatters on 0800 121 6513.