IR35 for hirers and UK businesses

To reduce the risk of IR35 non-compliance, businesses should conduct regular assessments, seek professional advice, document the relationships with contractors, manage contracts and agreements, communicate with contractors, stay informed of changes to the rules, and implement processes and systems to manage compliance.

Businesses should conduct robust status determinations, ensure they have comprehensively written contracts, and gather the additional evidence used in their determinations.

To find out how to implement a robust compliance process into your business, we recommend following the five simple steps outlined in our "more detail" section.

IR35 may affect your company if you engage contractors who operate through intermediaries, such as Personal Service Companies (PSCs), who should be classified as employed for tax purposes.

Non-compliance with the off-payroll legislation has implications for private sector businesses which are medium or large.

Where a recruitment agency is in the supply chain, they are responsible, as fee-payer, for processing the payments made to the contract depending on the IR35 status.