IR35 and Limited Company Contractors

IR35 Shield for Contractors membership offers free status results, unlimited status determination statements, our Tax Investigation Service, discounted legal services, and access to support to answer individual IR35 questions.

If a contractor is "Inside IR35" (or IR35 applies), their limited company is only liable for tax if the original Intermediaries Legislation applies. Contractors are not responsible for any tax under the new off-payroll rules.

Contractors must pay taxes, including income tax and National Insurance contributions, as deemed employees, and the hiring company is responsible for making these payments.

To demonstrate IR35 status, contractors must provide evidence such as written contracts, statements of work, and other agreements outlining the nature of their relationship with the client, showing they are not subject to IR35.

Non-compliance with the IR35 legislation only has implications for contractors where the original rules apply. There is no tax risk under the new rules.

The term "Inside IR35" describes a contractor who is classified as an employee for tax purposes.

The scope of IR35 does not encompass all contractors, but rather applies to those who provide their services through an intermediary.

When a contractor is not regarded as an employee for tax purposes under the UK's IR35 legislation, it is referred to as "Outside IR35".

A contractor can insure against the costs of professional fees incurred by their company in case of an HMRC investigation into their company.