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  4. Am I Inside or Outside IR35?
  1. Home
  2. IR35 FAQ's
  3. Am I Inside or Outside IR35?

Am I Inside or Outside IR35?

This is a question that can only be answered by your end hirer. It is their responsibility to undertake an assessment that clearly tells you and HMRC whether your working relationship with them falls inside or outside of IR35.

Whether you are inside or outside IR35 is an important thing to understand. It impacts the way you earn and pay tax, so there are legal implications for both you and your end hirer. The assessment process is designed to safeguard HMRC from contractors essentially getting the tax benefits of being a limited company whilst undertaking a full-time role with little or no risk.

By completing an SDS, your end hirer will generally look at how much supervision you need, how much direction you take and how much control you have whilst doing the work – amongst other indicators of employment or self-employment.

Generally, the less freedom you have and the more instructions you are given in your work, the more likely it is that you fall inside IR35 and will need to be paid and taxed as an employee with PAYE and NIC.

Updated on 17th February 2020

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