What’s IR35, and what does it mean for contractors?

IR35 is a set of rules in the UK that determine whether a contractor should be treated as an employee for tax purposes. It helps the government ensure that contractors are paying the right amount of tax and not avoiding their responsibilities.

If a contractor is "inside" IR35, it means they’re considered like an employee. They have to pay taxes and National Insurance contributions, just like employees. The government looks at factors such as the level of control the contractor has over their work and who decides when and where they work to determine their status.

If a contractor is "outside" IR35, they’re treated as self-employed for tax purposes. They have more control and independence over their work and are responsible for managing their own taxes.

Contractors need to understand IR35 rules to make sure they’re following the law. It's important to consult with accountants or tax professionals to ensure you’re paying the right amount of tax and complying with the rules.

Please note that IR35 rules are specific to the UK, and other countries may have different regulations for contractors.

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