Who should complete an IR35 assessment?

Under the changes to the legislation introduced in April 2021, the responsibility for determining IR35 status lies with the client receiving the services unless exemptions apply.

If the client is small or wholly overseas, the original rules apply, and the contractor is responsible for their assessment and tax liabilities.

When the client assesses a worker’s IR35 status, they should create a Status Determination Statement (SDS) and pass it to the worker and party below them in the supply chain.

The SDS should be comprehensive, contain the status determination and include reasons for reaching that conclusion.