What is IR35 and how does it affect contractors?

IR35 determines whether contractors should be treated as employees for tax purposes. If caught by IR35, you'll pay income tax and National Insurance as if employed, losing many contractor tax benefits including expense claims and dividend tax efficiency.

How do I know if I'm inside or outside IR35?

IR35 status depends on three key factors: control (who decides how, when and where you work), substitution (can you send someone else to do the work), and mutuality of obligation (is there an ongoing expectation of work). HMRC's CEST tool can help assess your status.

What are the penalties for getting IR35 wrong?

Penalties can include backdated tax and National Insurance contributions, plus interest and potential fines. For medium and large companies, the client is responsible for determining status. For small companies, the contractor remains responsible.

Can I claim expenses if I'm caught by IR35?

If you're inside IR35, you can only claim limited expenses similar to an employee, such as professional fees and travel between contract locations. You lose the ability to claim home office expenses, equipment costs, and other business expenses available when outside IR35.

Do I need professional IR35 advice?

Yes, IR35 rules are complex and the financial implications of getting it wrong are significant. Professional advice can help ensure correct status determination, proper contract structuring, and compliance with current regulations.

How often should I review my IR35 status?

Review your IR35 status for each new contract and whenever working arrangements change significantly. Changes in control, working practices, or contract terms can affect your status determination.

GoForma: Complete IR35 Guide

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What is IR35
Who IR35 impacts
Planning for IR35
IR35 Action Plan
Umbrella companies
Working inside/ outside IR35

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Calculators IR35 Assessment - Check IR35 Status for Tax

Our inside IR35 calculator helps contractors and freelancers quickly determine their IR35 status by answering key questions about working practices, control, and substitution rights. This free assessment tool evaluates HMRC's off-payroll working rules to identify whether you fall inside or outside IR35 for tax purposes.

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