“Outside IR35” refers to a situation where a contractor is considered to be genuinely self-employed and providing services through a personal service company (PSC). As such, they are not subject to employment taxes under the UK’s IR35 legislation.
More detail
A contractor operating “Outside IR35” is not treated as an employee for tax purposes. Instead, they are running their own business and supplying services to clients via a PSC. This means the contractor is responsible for managing and paying their own Income Tax, National Insurance contributions, and other associated costs.
Being outside IR35 allows contractors greater autonomy and flexibility, enabling them to work independently without being taxed as employees.
However, determining IR35 status can be complex. It is essential that contractors fully understand and correctly apply the rules to avoid legal or financial repercussions.
