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Rules to determine whether a contractor should pay tax like an employee.
IR35 (also known as off-payroll working rules) are designed to prevent contractors from avoiding employment taxes by working through an intermediary (typically a limited company). If the rules apply, you are deemed an employee for tax purposes and must pay Income Tax and NI through your intermediary's payroll or via your fee payer. In the public sector and medium/large private sector companies, the end client determines your IR35 status.
This definition is for informational purposes only and does not constitute tax, legal, or financial advice. Rules may change and outcomes depend on your circumstances.
These GOV.UK and HMRC sources provide the official context for this glossary entry. The definition is educational and does not determine your individual tax position.