Employment status
IR35 and other special rules
There are special rules that apply to contracts where individuals provide their services to a client through a third party, such as their own limited company or partnership. Special rules also apply to contractors and self-employed subcontractors in the construction industry. See our guide on the regulations for the construction and building services sector.
IR35
Legislation commonly known as IR35 brings the tax paid on
certain contracts in line with the tax paid by employees.
As an employer, you do not make deductions for PAYE or NICs
from payments made under such a contract to an "intermediary".
See our guide on individuals, companies and IR35.
Contractors and subcontractors in the construction
industry
There is also a special tax scheme for self-employed
contractors and subcontractors working in the construction
industry. It does not apply to employees, who should be dealt
with under the PAYE system.
Find out about the Construction Industry Scheme on the HM Revenue & Customs website.
Subjects covered in this guide
- Introduction
- Workers and employees
- Am I legally classed as self-employed?
- Employment status of company directors
- IR35 and other special rules