Contract review
Written terms assessed against employment-status indicators.
IR35 asks whether an individual providing services through an intermediary would have been an employee for tax purposes if they had contracted directly. The answer comes from the contractual terms and real working practices rather than one clause in an agreement.
A contract review without understanding how the engagement actually operates is incomplete. Substitution, control, financial risk and the wider relationship all need context.
Contractor, client and intermediary enquiries are welcome.
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The contract, actual working arrangements and responsibility for making the status decision must all be identified.
A well-drafted agreement cannot override working practices that point towards employment. Conversely, employment-like wording needs to be considered in the context of the whole relationship.
The service can be used by a contractor, personal service company or engager.
Written terms assessed against employment-status indicators.
How the engagement operates in reality.
Identification of which party has statutory responsibility.
Review of client Status Determination Statements and reasoning.
Technical support where contractor and client disagree.
Previous engagements and potential tax exposure reviewed where required.
Client size and contractual chain are established.
Contracts and relevant status decisions are examined.
Actual control, substitution and commercial features are reviewed.
The tax-status reasoning and practical implications are set out.
The off-payroll legislation shifts responsibility in many public-sector and medium or large private-sector engagements, while small private-sector clients are treated differently.
Employment status is fact-sensitive. A standard contract template or single status indicator should not be treated as decisive without considering the engagement as a whole.
Current rules for clients, workers and intermediaries.
Official IR35 guidance ↗Client responsibilities and status-determination requirements.
Client guidance ↗No. The rules apply where the hypothetical direct relationship would amount to employment for tax purposes.
That depends on the client. Public bodies and medium or large private clients generally make the determination, while a PSC retains responsibility for small private clients.
No. Actual working practices also matter.
HMRC states it will stand by CEST results where the information supplied is accurate and the tool is used in accordance with its guidance, but the underlying facts remain important.
There is a client-led disagreement process under the off-payroll rules.
Tax status and employment-law rights are related concepts but are not identical tests.