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Contractor flowchart - off-payroll working (IR35)

Updated 29 April 2021

Use this flowchart to check if you are affected by the off-payroll working rules (IR35).

Question 1

Do you work through your own limited company or other intermediary (this could be a partnership or another individual)?

• if yes, go to question 2
• if no go to outcome 1

Question 2

Do you work as a contractor for a client who is a small non-public sector organisation?

Check the criteria for information on what a small client is. You have the legal right to ask your client about its size.

• if yes, go to outcome 2
• if no, go to question 3

Question 3

Is your client a public sector organisation (public authority) impacted by the 2017 reform?

• if yes, go to outcome 3
• if no, you are affected by the April 2021 changes to the rules - go to question 4

Question 4

Have you provided services through your own limited company or other intermediary on or after 6 April 2021?

• if yes, go to outcome 4
• if no go to outcome 1

Outcome 1

You are not affected by the rules - take no further action.

Outcome 2

You need to follow the existing rules.

It will remain the responsibility of your limited company or other intermediary to determine whether the off-payroll working rules apply.

Outcome 3

You should continue to follow the rules that came in in April 2017.

For more information see the guidance Public sector off-payroll working for intermediaries and contractors.

In addition, from 6 April 2021:

1. You should receive a ‘Status Determination Statement’ from your client informing you of your employment status for tax purposes

2. If you disagree with the status determination, you can dispute the decision with them

Outcome 4

You may be affected by the changes which came into effect on 6 April 2021.

The off-payroll working rules changed on 6 April. Your client is responsible for determining whether the rules apply (what your employment status for tax purposes should be). For more information see the guidance April 2021 changes to off-payroll working for intermediaries and contractors.

Find out from your client what your employment status for tax purposes will be.

Depending on your contract and the working arrangements, your contract will be determined to be either:

• inside the off-payroll working rules
• outside the off-payroll working rules

If your contract is inside the off-payroll working rules (IR35)

You will be employed for tax purposes for that contract. Your client should also provide you with a ‘Status Determination Statement’.

The party paying your limited company or other intermediary (usually the fee-payer) will deduct Income Tax and Employee National Insurance Contributions (NICs) before they pay for your services. They will also be responsible for paying Employer NICs and apprenticeship levy, if relevant.

You may still need to submit a tax return, but relief is available on the tax already paid.

If your contract is outside the off-payroll working rules (IR35)

You will be self-employed for tax purposes for that contract.

Your limited company or other intermediary will continue to be responsible for paying the tax due.

The party paying your limited company or other intermediary (usually the fee-payer) will not deduct tax and National Insurance Contributions (NICs) before they pay for your services.

If you disagree

If you disagree with the status determination by your client, you can dispute the decision with them.

If you want to check your status determination, you can use the Check Employment Status for Tax (CEST) tool to help you.