Employment status (IR35)

Understanding UK employment status and IR35 is essential for businesses and contractors. LIMES internatonal offers expert guidance to ensure compliance and reduce risks. IR35 combats tax avoidance by individuals using intermediaries like personal service companies (PSCs). It determines whether a contractor should be taxed as an employee. Those inside IR35 are taxed as employees, whereas those outside IR35 operate as genuine businesses.

In the public sector and large private sector businesses, the hiring organisation determines IR35 status. In the small private sector, responsibility lies with the contractor. Misclassification can result in penalties and tax liabilities.

Individuals can be classified as employees, workers, or self-employed. Employees have full rights, including sick pay and holiday pay. Workers have some rights but more flexible arrangements, while self-employed individuals run their own business and handle tax obligations. Correct classification is crucial to avoid legal and financial consequences.

LIMES offers tailored support to help businesses and contractors navigate IR35 and employment status challenges. Our expert team ensures compliance, reduces risks, and provides clarity in an evolving regulatory landscape.

LIMES provides:

IR35 status assessments
Contract reviews
Tax and payroll guidance
Ongoing compliance support