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IR35- How will I know if I am caught?

IR35 applies to all contractors who do not meet the HMRC definition of "self employment".

As a general rule you will probably fail the HMRC definition of self-employment and are 'caught' by IR35 legislation if you:

The IR35 Test

HMRC look at an employment contract and may decide that it is not a true reflection of the work being carried out. The overall picture is mainly determined by the working practices of the individual, made up by how you operate on a day to day basis and the aim of the test is to determine whether or not you are effectively an 'employee'.

The HMRC will consider factors including:ยท

If you are unsure about whether you are caught by IR35 contact HMRC, if it is found later that you have been incorrectly operating outside of the legislation then you will be charged for the additional tax, NICs, interest and penalties

More on IR35
A detailed explanation of IR35
IR35 - Is it still Relevant?
IR35 Investigations