As set out in Practice Note: IR35—introduction, developments and key difficulties, the IR35 regime comprises two main aspects.

This Practice Note explains the aspect of the IR35 regime which applies where:

1. •

   from 6 April 2017, a Public authority, and

2. •

   from 6 April 2021, a private Sector entity (other than one that is ‘small’ or does not have a ‘UK connection’)

engages a worker via an intermediary such as a personal service company (PSC). This aspect of the IR35 regime is referred to as the ‘large and public client off-payroll regime’ throughout this Practice Note and all other items within this subtopic.

The other aspect of the IR35 regime applies in all other circumstances, for example where the engaging end client is a small private sector entity or is one that does not have a UK connection. That regime is referred to as the ‘small client off-payroll regime’ throughout this Practice Note and all other items within this subtopic. For an explanation and consideration of the small client off-payroll regime,