Introduction: Employment, self-employment and engaging a worker through an intermediary company
When engaging a worker to provide services to your business, it is
important to consider whether the individual worker providing those
services has the status of an employee of your business or is instead a
self-employed contractor. (For convenience, we refer to an individual as a
“worker” whether an employee or self-employed).
It is also important to consider whether in the case of a personal service
company (“PSC”) used as an intermediary by that individual worker, the IR35
rules apply to the proposed engagement of that company. IR35 legislation is
often an area of confusion for businesses.
Although the IR35 rules also apply to intermediaries other than PSCs, these
information pages address the use of PSCs only.
The Business documents available from Simply-Docs include templates which
can be used as a basis for creating forms of agreement between a client and
a freelance worker/intermediary company (to see those templates, click