1. An individual performs services for a client.
2. These services are provided under a contract involving a limited company.
3. If the services were provided under a contract directly between the individual and the client, the individual would be regarded as an employee of the client.
Conditions 1 and 2 will apply to all contractors providing their services through a limited company. It is point 3 that creates the uncertainty in deciding whether or not to apply IR35.
One exception to these conditions is in relation to being an ‘Office Holder.’ By simply being an office holder of your end client, IR35 will apply; there’s no need to consider condition 3.
For more information on IR35 and the upcoming changes to the private sector, take a look at our IR35 hub.