What is IR35? IR35 Explained
What does “Outside IR35” mean?
A contractor working on an “Outside IR35” basis would not be considered an employee of the client for tax purposes. They can be paid gross and are responsible for operating and paying their own taxes.
Get the complete set of our expert-written IR35 answers in one convenient, downloadable document for free.
Easy to save, print, or revisit whenever you need it.
More detail
"Outside IR35" refers to a situation where an individual providing services through an intermediary, such as a personal service company (PSC), is not considered a deemed employee for tax purposes according to the UK's IR35 legislation.
The contractor can be paid gross and will be in full control of the monies earned, like any other company. The contractor is responsible for assessing and paying corporation tax due, alongside any taxes they may personally owe if they receive dividends from the company.
Need help? Speak with an expert
If you’re unsure about what you’ve read or how IR35 applies to you, a quick conversation can help.
IR35 training. Proof for HMRC, best practice for your business.
HMRC investigations request proof that you've trained your staff on IR35 and off-payroll. Our online training makes IR35 simple, educates your team and demonstrates your compliance to HMRC.