FT

HR & Legal

IR35 Status Indicator

Review UK off-payroll working risk factors for a contractor engagement before using CEST or issuing a status determination.

Worker uses an intermediary? Usually a PSC, partnership, or another intermediary. Employed by umbrella company? IR35 is unlikely to apply to umbrella employees.
Client type Determines who is usually responsible for status.
Substitution Can the worker send and pay a substitute? Client control Control over what, how, when, and where work is done.
Mutuality of obligation Expectation of ongoing work beyond this project. Financial risk Unreimbursed costs, loss risk, or fixing defects at own cost.
Equipment Who provides essential equipment for the engagement? Integration Is the worker part and parcel of the client organisation?
Exclusivity Can the worker serve other clients during the engagement? Payment basis How the worker is paid.

Responsibility note

The client is usually responsible for determining status and issuing a Status Determination Statement.

Indicator result

Likely inside IR35

Risk score 21 / 21.

Risk meter

The answers point toward employment for tax purposes. Review the contract and working practices before issuing or accepting an SDS.

Strongest inside factors

  • Personal service required No genuine substitute right points toward employment status.
  • High client control Client control over what, how, when, and where work is done points inside IR35.
  • Ongoing work expected Expectation of ongoing work points toward employment status.
  • Part and parcel Being integrated into the client organisation points toward employment.

Strongest outside factors

  • No outside factors selected.

How this IR35 indicator works

IR35 applies where a worker provides services through their own intermediary and would be an employee for tax purposes if engaged directly. This tool weights common status indicators from HMRC guidance and case law themes. It is a triage tool, not HMRC CEST and not a legal opinion.

Scoring model

inside_risk_score = substitution + control + mutuality + financial_risk
                  + equipment + integration + exclusivity + payment_basis

0-7    = likely outside IR35
8-12   = mixed / needs review
13+    = likely inside IR35

Official source assumptions checked

GOV.UK says the off-payroll working rules apply when a worker provides services through an intermediary and would have been an employee if engaged directly. HMRC CEST and the Employment Status Manual consider factors including personal service and substitution, control, mutuality of obligation, financial risk, equipment, and whether the worker is part and parcel of the client organisation.

What this tool does not include

It does not issue a Status Determination Statement, replace CEST, decide employment law status, check all legislation, handle every agency chain, assess tax avoidance schemes, or determine whether a client qualifies as small. Keep contract terms and actual working practices aligned before relying on any status position.

References

FAQ

Is this the same as HMRC CEST?

No. HMRC CEST gives HMRC’s view based on the answers entered. This page is a quick risk indicator to help identify issues before a formal status review.

What is the strongest outside IR35 factor?

A genuine, practical right of substitution where the contractor can send and pay a substitute is usually a strong outside indicator. The written clause must match the real working practices.

Why does client control matter?

HMRC guidance treats control over what work is done, how it is done, when it is done, and where it is done as a significant pointer toward employment status.

Who is responsible for the IR35 decision?

For public-sector and medium or large private-sector clients, the client usually determines status and issues an SDS. For small private-sector clients, the worker intermediary is usually responsible.

Can one contract be inside and another outside?

Yes. GOV.UK says off-payroll working applies on a contract-by-contract basis. A contractor can have one engagement that is inside IR35 and another that is outside.