IR35 applies to public authorities and private-sector businesses. Since 6 April 2021, clients in the public sector and medium and large-sized clients in the private sector have been responsible for determining a consultant's employment status (ie whether the consultant is genuinely self-employed for tax purposes).
If a client is a small business in the private sector, it is the intermediary's responsibility to determine a consultant's employment status for each contract.
Multiple factors contribute to whether a consultant is seen as an employee or not for IR35 purposes. For more information, read IR35 status determination.
Where IR35 applies, the fees paid by the client to the consultant are treated as employment income and are subject to income tax and National Insurance Contributions (NICs).
This Consultancy Agreement template is IR35 compliant. A consultant engaged under this agreement is a consultant and not an employee.
If you need bespoke legal advice on determining a consultant’s status, get IR35 status determination advice.