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  4. What is an SDS? – (Status Determination Statement)
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  2. IR35 FAQ's
  3. What is an SDS? – (Status Determination Statement)

What is an SDS? – (Status Determination Statement)

An SDS or status determination statement, is a document that summarises an end hirers IR35 assessment for a specific contractor. It determines whether they fall inside or outside IR35, and therefore how they will be paid and taxed.

If you work as a contractor then any end hirers you work for are responsible for assessing you for IR35 and providing you with an SDS (status determination statement).

Your SDS is basically a summary explaining how they reached their decision about your IR35 status. It will confirm whether you are captured or not, and how you will be paid for the work you complete for them. Every new contract – or change that is made to a current contract – will require a new SDS

There is no set template for an SDS, but end hirers are obliged to include whether or not a worker would legally be an employee if they were directly engaged by them. They must provide clear reasons for their conclusion and show that they have taken reasonable care in making the decision. As part of this reasonable care, they are entitled to use the support of Brookson Legal to help them gather evidence and clarify their understanding. 

If you disagree with an end hirers IR35 assessment and wish to contest the SDS, you can request an end hirers review by Brookson Legal yourself. If you challenge the decision, the end hirer must respond within 45 days – either by confirming their current assessment or issuing you with a new SDS with the revised decision.

Updated on 1st April 2020

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