IR35 Essentials for Contractors

The IR35 legislation continues to impact how IT contractors operate across the UK. For those considering or currently engaged in contract work, understanding IR35 is no longer optional — it's essential.

What is IR35?
IR35 is tax legislation aimed at identifying individuals who are essentially employees in all but name, and who therefore should be taxed accordingly. If you're found to be working inside IR35, you're subject to PAYE taxes as if you were a permanent employee — minus the job security and benefits.

What This Means for You
In practical terms, this affects your take-home pay, your ability to claim expenses, and your working arrangements. Clients and agencies alike are becoming more cautious, often favouring those who can clearly demonstrate outside IR35 status through their contract terms, working practices, and business setup.

How to Protect Yourself

• Get your contracts reviewed by an IR35 specialist

• Use a compliant umbrella company if working inside IR35

• Keep evidence of control, substitution rights, and financial risk

• Understand your client’s responsibilities under the off-payroll rules

Navigating IR35 doesn't have to be daunting — but staying informed is crucial. If you’re not sure where to start, our recruitment team can point you towards trusted IR35 specialists or help you find outside IR35 roles suited to your skillset.