This Guidance Note: Employment, Self-employment, and IR35 provides an
overview and explanation of the differences in law between an employee and
a self-employed person, and the impact of the IR35 rules on the use of a
personal services company (PSC) by a person providing services to a
Section C of this Guidance Note takes full account of and explains the amendments to the IR35 legislation, effective from 6 April 2021, that were made by the Finance Act 2020. Those changes to the IR35 legislation were made entirely in line with the Government's previous proposals.
If those changes do or might affect
you, we strongly recommend that you take the steps that we suggest under paragraph 5 of Section C of this Note (“Impact of
changes to IR35 on your business and action needed now”), and take
professional advice, to cater for the changes.
We also recommend that you read this note before deciding which of our
various template agreements will be most suitable for you to use when
engaging an individual or a company to provide your business with any
The note contains guidance on why, for tax and employment law purposes, it
is important to consider whether a person is in law an employee or a
self-employed individual, how to decide whether a person is an employee or
a self-employed individual, and whether the IR35 rules apply where you
engage a worker to provide services to your business through an
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