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Glossary · Tax

IR35 / off-payroll working

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Definition: The UK tax rule that determines whether a contractor working through their own limited company should be taxed like an employee.

Since April 2021 in the private sector (and April 2017 in the public sector) the engaging organisation is usually responsible for assessing status and operating PAYE if 'inside IR35'. HMRC's CEST tool is one indicator but not binding.

Primary source: gov.uk/topic/business-tax/ir35

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