IR35 guide
IR35 and independent recruitment consultants: what you need to know.
IR35 is one of the most misunderstood areas of self-employment tax. Here’s a plain-English explanation of what it is, who it applies to, and what it means for recruitment consultants working independently.
Legal note
This page is being finalised with a qualified employment tax adviser to ensure accuracy. The full guide will be published shortly. In the meantime, we’re happy to discuss IR35 and your specific situation directly.
What we can tell you now
IR35 and independent recruiters — the key points.
IR35 is tax legislation designed to prevent tax avoidance by people who work as self-employed contractors but whose working arrangements are effectively those of an employee. The rules apply primarily to people working through a personal service company (limited company) for a single end client.
As an independent recruitment consultant operating across multiple clients, the IR35 risk is generally low. You operate as a self-employed sole trader — not through a personal service company — and work across multiple client engagements rather than for a single end client in an employment-like arrangement.
That said, every situation is different, and if you run a contract desk and are in any doubt about your position, it’s worth speaking to an accountant who specialises in contractor tax. We can make introductions.
Questions about IR35?
We’re happy to talk through your specific situation.
If you have questions about IR35 and how it applies to your way of working, book a conversation. We’ll discuss your situation and point you to specialist advisers where appropriate.