April 6th 2021 will be a turning point for people working on a contract basis as the new IR35 reform, end clients will be responsible for determining the contractor status (whether they fall inside or outside of the IR35 scope).

So, from the beginning of the new tax year, contractors working through PSCs or other intermediaries will no longer be responsible for determining their own IR35 status which was the case until now as this will fall to the end client to work out.

The final status will still be determined by SDC (Supervision, Direction, Control) however unlike the present, this will be the obligation of the end client.

While both working inside and outside of the IR35 have their own benefits, here’s a few tips on how to work in order to get classified as outside of the IR35:

  • Be your own (wo)man: work your own hours or consider an agreement with the client – if your client has the right to decide your working hours without any consultation, you will probably be seen as an employee
  • Use your own tools: if your client is providing you with any work equipment, uniforms or gadgets you have no financial risks of your own, as it would be in a regular employment
  • Look at the bigger picture: rather than focusing on your own view, put yourself in the clients’ shoes and see their viewpoint. Work out any misunderstandings with them prior to providing the SDS (Status Determination Statement)

Use the HMRC CEST tool honest answers to the questions will give you an estimate of which status you fall under and can help you work out what you need to change in your work style.