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Our Approach to IR35

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What is IR35?

IR35 is a UK tax legislation designed to tackle “disguised employment”, where individuals work through intermediaries—typically their own limited companies (often called Personal Service Companies or PSCs)—but would be considered employees if they were engaged directly by the client.

The rules aim to ensure that such workers pay broadly the same Income Tax and National Insurance Contributions (NICs) as regular employees. If a contractor is deemed to be “inside IR35,” they are treated as an employee for tax purposes, and the hiring firm (if medium or large) must deduct tax and NICs from payments made to the PSC.

Key points:

  • Introduced in 2000, IR35 is formally known as the Intermediaries Legislation.
  • It applies to contractors working through intermediaries, such as limited companies or partnerships.
  • Since April 2021, medium and large private sector clients are responsible for determining a contractor’s IR35 status and issuing a Status Determination Statement (SDS)
  • If the client is a small business, the responsibility remains with the contractor’s intermediary

Our Approach to IR35

  • Consultants should not work exclusively for Assent or our entities, and the consultant contract makes it clear that consultants should “maintain their own clients outside of Assent”.
  • Consultants are not obliged to accept the work we offer.
  • We select consultants based on location, industry experience and domain expertise to fulfil the agreement between Us and the Client.  Agreements will often comprise a number of components to be project managed by us.  
  • Consultants will mutually agree suitable dates with Us and the Client for any work carried out, and the Consultant’s diary will not be managed by Us.
  • We may reallocate work to other Consultants at any time.
  • We may provide the Consultant with access to systems, data and assets for the sole purpose of fulfilling the engagement with the Client.  
  • Consultants are not eligible for any employee benefits including the permanent issue of company equipment (laptop or mobile phone), retailer discounts, social events, etc.
  • We will raise purchase orders to the Consultant for each engagement, and these are not concurrent. Consultants’ fees are paid from Our funds under a separate contract.   

How to check IR35 Status?

The Government has an online questionnaire you can use to determine whether the consultant is inside of outside IR35 here: https://www.gov.uk/guidance/check-employment-status-for-tax

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