IR35 Status Determination Statement

This IR35 Status Determination Statement template is designed to save time when you, as a “Client” company, are completing a status determination statement (an “SDS”) in cases where you have to issue an SDS to comply with the IR35 legislation.

This form of SDS assumes that the Client will engage an individual (the “Worker”) through an intermediary company (“Company”) that the Worker uses to provide work or services to the Client. It also assumes that there will not be any additional intermediary organisation between the Client and the Worker.

When an SDS is required

IR35 legislation only requires a Client to issue an SDS where it is a “medium” or “large” (rather than a “small”) company as defined by the applicable legislation.

Using the suggested reasons in the template

Each of the “reasons” set out in this template are in the nature of suggestions. The lists of possible “reasons” are designed to focus your attention on some of the factors that you need to consider when preparing to complete each individual SDS that you have to issue in relation to each of your workers who provides you with services through a third party entity.

However, it will not be appropriate just to adopt and include the reasons set out in this template: the particular reasons that you will need to include in each case (and how each reason has to be stated) will depend entirely on the circumstances and on the nature and details of the role of each worker under their engagement.

Important legal point: reasonable care

The Client is legally obliged to take reasonable care when determining whether the worker would have been an employee if they were engaged directly by the Client. If they do not take reasonable care, liability for deducting tax and NICs will remain with the Client. HMRC provides some guidance as to what will be “reasonable care” at ESM10014 - off-payroll working legislation: Chapter 10, ITEPA 2003 (from 6 April 2021): basic principles: reasonable care.

Read this first

Before using this template, we recommend that you read the relevant Business Information pages, IR35, Employment and Self-Employment, and the Employment, Self-Employment, and IR35 Guidance.

IR35 Status Determination Statement is part of Employment. Just £38.50 + VAT provides unlimited downloads from Employment for 1 year.