IR35 explained: what overseas businesses need to know

IR35 is UK tax legislation that affects how contractors are taxed. If you're hiring contractors in the UK, understanding IR35 is essential.

IR35 determines whether a contractor is genuinely self-employed or should be classified as an employee for tax purposes. Since April 2021, medium and large businesses are responsible for making this determination.

If a contractor falls 'inside' IR35, they must be taxed as an employee — meaning the hiring company must deduct income tax and National Insurance contributions.

At Onshore, we use independent Qdos assessments (billed at cost, ~£50) to ensure your IR35 determinations are accurate and legally defensible. This protects both your business and your contractors.