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IR35, also known as the Intermediaries Legislation, is concerned with employment status (employed or self-employed) for tax and National Insurance purposes.

At its most basic, it means that if you provide your services to a third party (the client) through a limited company (an intermediary) then you have to consider IR35 for each and every contract you undertake.

IR35 is concerned with your relationship as an individual with the end client. To be inside IR35 means that this relationship is effectively one of disguised employment and you will have to pay employed levels of tax and NIC on your income. If the relationship is not disguised employment and is outside IR35, you are free to account for your own tax and NIC on your income through your own company.

The net result is that being inside IR35 usually costs you a lot more!

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