IR35 Checklist

The following is a non-exhaustive checklist of some of the factors the Inland Revenue would use in assessing whether income from a particular contract is subject to the IR35 rules:

 
Badges of Trade Indicative of Self Employment Indicative of Employment
BASIS OF REMUNERATION Remunerated on a project basis, or at a fixed price. Remunerated on a time basis. Paid holidays, sick pay etc.
RIGHT OF CONTROL You have the right to decide how, when and by whom a job is done. Can send substitute to do job. Close directional supervision by your client (master – servant relationship). Client can dismiss you.
TOOLS OF TRADE You supply large or expensive equipment, and may work from your own premises. Provision of only small or no equipment. Work at client’s premises
TRADING STRUCTURE Trade with more than one client at a time, or work on short successive assignments with different clients. Long term assignments with the same client.
FINANCIAL RISK A loss can be suffered. All rejected work to be corrected at your own cost. Penalty clauses. A larger profit can be made from sound management. No financial exposure. All rejected work to be corrected at your client’s cost.
BUSINESS ORGANISATION Own premises, letterheads, other employees, insurance etc. Quoting for jobs in advance. Advertising None.
TERMS OF ENGAGEMENT Contracts or understandings which record the above. Contracts or understandings which do not record the above beneficial badges of trade, or no contracts at all.