Who is Affected by IR35?

IR35 legislation has proved to be open to much interpretation, and many people who thought they were not affected have been charged back taxes or been taken to court and lost.
Potentially, IR35 affects all contractors who do not meet the Inland Revenue's definition of 'self employment'.

As a general rule if: -

• you only have one current contract (i.e. you do not have multiple contracts at the same time),

• you travel to the same workplace each day,

• you are paid by the hour or day,

• you work under the jurisdiction of the client,

• you have no right of substitution (i.e. if you cannot go into work that day you cannot send someone in your place), and

• you are taking no business or financial risk.

Then it is unlikely you will meet the Inland Revenue's self employment definition and you will be caught by IR35 legislation.