Skip to main content


What is IR35?

IR35 was introduced in 2000 to address concerns relating to individuals who supply their services via an intermediary (such as a Ltd Company, a Partnership, a Personal Service Company, or an individual (self-employed/sole trader) instead of as an employee, and therefore avoid paying employee income tax and national insurance contributions.

Where an assignment is deemed ‘inside’ IR35, PAYE deductions must be made from the contractor's pay. Any assignment ‘outside' IR35 is classed as a genuine Business-to-business (B2B) service and is therefore not subject to the same tax treatment as employees.

IR35 process is managed by the IR35 team. For further information, please visit Engaging self-employed people for work.

IR35 Training from BUFDG

BUFDG (British Universities Finance Directors Group) offer a free e-learning course called "Extended Workforce: Employment Status and IR35":

Self-employed Certificate

This refers to the IR35 process for Personal Services Companies which is an HMRC requirement to determine whether someone should be engaged via HR (and paid as an employee through payroll) or through the procurement route (and paid as a supplier by purchase order/invoice).