Status determination statement—off-payroll rules (IR35)

The following Employment precedent provides comprehensive and up to date legal information covering:

  • Status determination statement—off-payroll rules (IR35)

Status determination statement—off-payroll rules (IR35)

[To be set out on client’s headed notepaper or with client’s logo]

Status determination statement

This is a status determination statement, provided in accordance with the requirements of section 61NA of the Income Tax (Earnings and Pensions) Act 2003, in relation to the off-payroll working rules. The off-payroll working rules can apply if a worker (sometimes known as a contractor) provides their services through their own limited company (usually known as a personal service company, or PSC), or another type of intermediary, to a client.

The rules apply if a worker provides their services to a client through an intermediary, but would be classed as an employee for tax purposes if they were contracted directly, and ensure that such workers pay broadly the same tax and National Insurance contributions (NICs) as employees. These rules are known as ‘IR35’.

As an organisation who is or will be receiving the services of a contractor, we are the ‘client’ for the purposes of the off-payroll working rules (also known as the engager, hirer or end client). As the client, we are responsible for determining whether the off-payroll working rules apply. We do this by assessing various aspects of an engagement on which the worker is working for us, on the basis of a hypothetical contract directly between us and the worker (ie on the basis that the

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