IR35 in the UK

How To Determine Your Tax Status

The following questions need to be considered before we can assess your likely tax status.

If you can answer yes to the following questions then you are likely to be an employee of your client(s):

1. Do you work set hours or a given number of hours a week or month?
2. Do you have to do the work yourself rather than hire someone else to do the work for you?
3. Can someone tell you what to do at any time or when and how to do it?
4. Are you paid by the hour, week or month?
5. Can you get overtime pay?
6. Do you work at the premises of the person you work for, or at a place he/she decides?
7. Do you generally work for one client at a time rather than having a number of contracts?

If you can answer yes to the following questions then you are likely to be self-employed of your client(s) and therefore would be outside the IR35 rules should you decide to transfer your business to a company:

1. Do you have the final say in how you do the work for the client?
2. Can you make a loss on the contract?
3. Do you provide the main items of equipment you need to do the job for the client, not just the small tools many employees provide for themselves?
4. Are you free to hire other people on your own terms to do the work you have taken on? Do you pay them out of your own pocket?
5. Do you have to correct unsatisfactory work in your own time and at your own expense?
6. Do you have a number of clients at the same time?

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