IR35 and Limited Company Contractors

What evidence do contractors need to prove outside IR35 status?

To prove their IR35 status, contractors need evidence such as a written contract, statements of work, and any additional agreements, as well as an understanding of the nature of their relationship with the client and how it is managed, to demonstrate that they are not subject to IR35 rules.

More detail

When working for a small business (IR35 exempt), and therefore responsible for assessing your own status, contractors will need to gather and present evidence that demonstrates your IR35 status to potential clients and intermediaries in the supply chain.

This can be done by completing a Status Determination Statement (SDS). You will also require a robust and comprehensive contract that outlines the terms of the relationship. For both, it is important to obtain professional advice to ensure compliance with the legislation and to minimise the risk of penalties and fines for non-compliance.

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