What is IR35? — UK Software Development Guide
Direct Answer
IR35 (Off-Payroll Working Rules) is UK tax legislation that determines whether a contractor should be taxed as an employee. Since April 2021, medium and large businesses are responsible for making IR35 determinations — not the contractor. If a contractor would be an employee if working for you directly (without the intermediary limited company), they are "inside IR35" and income tax and National Insurance must be deducted as if they were an employee.
IR35 in the UK
IR35 has significantly affected the UK software development market since the April 2021 reform. Medium and large UK businesses must now issue a Status Determination Statement (SDS) for each contractor engagement. Getting this wrong creates HMRC liability for unpaid income tax, NI, and penalties. ClickMasters eliminates IR35 risk for clients entirely — our developers are our employees, not contractors.
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Get Expert Advice on IR35
Get Expert Advice on IR35 ClickMasters engineers apply IR35 principles in every project. Free consultation. → clickmasterssoftwaredevelopmentcompany.co.uk/contact/