- Employee law
- July 15, 2019
IR35 - Are your contractors really contractors?
By Lawbite Team

What is IR35?
Who will these changes impact?
- Your annual turnover is not more than £10.2 million;
- Your balance sheet total is not more than £5.1 million; and
- Your number of employees is not more than 50
If a business does not satisfy these elements, it will be deemed medium or large, and will be affected by the IR35 changes.
- Is the contractor subject to the company’s control?
- Is there a right of substitution (i.e. can the contractor provide someone else in his or her place)?
- Is the contractor integrated into the company’s business, or are they truly carrying on business on their own account?
- Is there a mutuality of obligation between the parties?
What steps should I be taking now?
- Put in place robust processes with set criteria to determine whether your contractors are more like employees than independent contractors
- Prepare systems for regularly assessing contractors’ employment status
- Train your staff to make IR35 determinations and regular assessments
- Budget for extra costs, in case your contractors do fall within IR35
- Ensure properly drafted contracts are in place which properly reflect your contractors’ responsibilities and employment status
Need help?
YOU MAY ALSO LIKE…
IR35 | 10 Rules for Contractors

In closing
Nothing in this article constitutes legal advice on which you should rely. The article is provided for general information purposes only. Professional legal advice should always be sought before taking any action relating to or relying on the content of this article. Our Platform Terms of Use apply to this article.
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