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What is IR35 and who does it affect?

We can help you navigate the IR35 maze with our range of articles, an IR35 calculator to help you see if you're at risk, detailed IR35 reviews from an accountant, and a jargon-free guide that explains IR35. Our payroll and accountancy solutions can help contractors whether their assignments are inside or outside of IR35.

Crunch offer the UK's first and only end to end solution for IR35. Call us now on 0333 920 4791 or book a callback with the button below to find out more.

Check the IR35 status of a contract assignment

If you’re a contractor working through a Personal Service Company, the off-payroll working rules (known as ‘IR35’) could have a big impact on how you get paid and how much tax and National Insurance Contributions you have to pay. Recruiters, whether in-house or at an agency, also need to be aware of the changes coming on 6th April 2020.

Whether you’re a contractor, a recruiter placing contractors on assignments, or an employer looking to assess the IR35 status of your contractor assignments, we’ve got a tool that can help you.

Free contractor tool

  • Free online tool for contractors
  • Quickly and easily see your IR35 risk
  • Purchase a report with detailed conclusions and recommendations for a fixed fee
  • Option to purchase an in-depth contract review to establish your employment status

IR35 tool for recruiters

  • Quickly and easily see the IR35 status for your contractor assignments
  • Subscription service for multiple assignment reviews
  • Assessments, downloadable reports and recommendations for each assignment
  • Try for free (seven-day trial)

IR35 tool for employers

  • Quickly and easily see the IR35 status for your contractor assignments
  • Subscription service for multiple assignment reviews - Try for free (seven-day trial)
  • Assessments, downloadable reports and recommendations for each assignment
  • Status Determination Statement service (coming soon)

IR35 for recruitment agencies or employers

If you’re a recruiter, an agency, or an employer with multiple contracts and assignments that you’d like to assess for their employment status, Crunch can help. Our IR35 tool provides assessments for all your assignments, as well as understanding your financial risk. It also offers recommendations on how to confirm the employment status of your contractors. Our free guide for recruiters focuses on what you need to do to be ready for the changes being implemented by HMRC on 6th April 2020.

Prove your IR35 status with an expert review

If you want the ultimate peace of mind about your IR35 status, you can get an IR35 contract review from one of our expert accountants. We’ll go through your contract and look at your actual working practices to decide whether the assignment is ‘inside’ or ‘outside’ IR35. We have two levels of contract reviews available, as well as an express service if you need an answer in the shortest possible time:

  • IR35 Contract Review - £59.50 +VAT
  • IR35 Enhanced Contract Review - £124.50 +VAT
  • Express IR35 Enhanced Contract Review - £249.50 +VAT

We can help you whatever your IR35 status

Our unique approach allows you to work on multiple contracts and assignments whatever your IR35 status.

Our limited company accountancy service is ideal where your assignment is ‘outside IR35’. You get the maximum tax-efficiency and control over your business.

We also offer an Umbrella service and work with a range of employment agencies to provide the payroll services you need.

All of these services are available in a comprehensive, single package for a fixed price. You may need to purchase additional services depending on your individual circumstances. Our specialist advisors will guide you, to ensure your service is as flexible as you need.

Plus package for limited companies

Fixed fee from
£ 109 .50
+VAT per month

Great for your peace of mind and perfect if you’re worried about IR35. Switch between services depending on the IR35 status of your assignment. We’ll take care of HMRC and Companies House, with easy-to-use software and expert advice.

Umbrella payroll package

from
£ 19 .50
per week

We'll pay you promptly for your work and look after all the tax and admin, leaving you to do what you do best. You'll get expert help and support whenever you need it.

Insurance for limited companies

from
£ 59 .50
per year

Our Business Protect Insurance covers you for legal expenses related to your business, including the legal costs of an IR35 investigation.

What is IR35?

IR35 is a tax law introduced to combat tax avoidance by workers supplying their services to clients via an 'intermediary' (such as a limited company) who would otherwise be an employee. If an assignment is ‘inside IR35' then HMRC expects the correct employment taxes and National Insurance to be paid. We have IR35 solutions that can help contractors with this.

  • Why is IR35 important?

    It’s important you establish whether your assignments are inside or outside IR35. HMRC can investigate your Personal Service Company at any time, and this can be time-consuming, costly and highly stressful. The financial impact of IR35 can be significant. You may find your future earnings are reduced and you may have to pay Income Tax and National Insurance Contributions (NIC) HMRC calculates you should have paid. HMRC can also apply financial penalties.

  • How does IR35 affect me?

    If IR35 rules apply to your assignment, you need to pay Income Tax and NIC as though you were employed directly, rather than contracted to work through your Personal Service Company. HMRC can go back up to six years and evaluate past assignments to see if the legislation should have applied. From 6th April 2020, the rules are changing for assignments with private sector companies.

  • Who determines your IR35 status?

    Following changes to be introduced by HMRC on 6th April 2020, responsibility for determining your IR35 status depends on whether you work in the Public Sector or the Private Sector. For medium and large sized companies in the private sector, and for all public sector organisations, the end-client will be responsible for determining the employment status of an assignment. Find out more about who determines your status and pays the tax.

  • How can Crunch help?

    To assess your assignment for IR35, try the Crunch IR35 calculator. If you receive a medium or high-risk assessment, we strongly advise you take action as soon as possible. This could include getting a more detailed review of your contract and working practices. Speak to us to see how we can help, with our range of products including IR35 payroll, IR35 Tax accounting or working through our Umbrella company. Please be aware that the results of our IR35 calculator can only be used as a guide.

  • Get an IR35 Review

    Crunch offer a range of IR35 contract and assignment review services. An expert will review your contract, accurately determine your IR35 status, and will assist in helping you to comply with the government's regulations in this area. We also offer advice on recommended changes to your contract or working practices to ensure you aren't incorrectly classified. Our package builder lets you choose the services you need from Crunch.

  • IR35 Guide

    We've pulled together all the information you need to know into our IR35 Business Guide. Our business guides are jargon-free explanations of key topics for freelancers, contractors, and small businesses. You can download our guides for free by joining Crunch Chorus - our free to join community for the self-employed.

    Get your free IR35 Business Guide

IR35 explained in three minutes

Watch our three-minute video to learn the basics of IR35, who it affects and what to do if you’re concerned about it.

IR35 webinar for contractors

Crunch’s Head of Accounting, Robert Grant, explains the upcoming IR35 rules and how they’ll affect contractors working through limited companies.

IR35 webinar for recruiters

Crunch and Professional Passport explain what IR35 means for recruiters and what action the need to take ahead of the impending rule changes in April 2020.

Related articles

Supervision Direction or Control

If you work through a Personal Service Company, you may not be able to claim tax relief on travel and subsistence expenses. For those still unsure whether they’re affected, you can use the Supervision, Direction, and Control (SDC) test to get a clearer picture.

Read this article →

Interested in our IR35 service?

If you’re a Crunch client please speak with your client managers. If not, please call us on 0333 920 4791 or book a callback with the button below to find out more.