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Working Practices Questionnaire

1. Substitution

If you sent a qualified substitute tomorrow, what would happen?

2. Control Framework

How are daily tasks actually allocated?

3. Mutuality of Obligation
4. Financial Risk
5. Integration
6. Business on Own Account
7. Evidence Availability

⚠️ Contract vs. Reality Mismatch Detected

0
IR35 Compliance Score
Confidence Matrix: 0%
AWAITING AUDIT

Risk Factor Heatmap

Substitution
Control
Mutuality (MoO)
Financial Risk
Integration
Business Profile

Pillar Compliance Detail

Substitution & Personal Service 0%
Control & Autonomy 0%
Mutuality of Obligation 0%
Financial Risk 0%
Business Integration 0%
Business on Own Account 0%
Likely HMRC CEST Logic Outcome:
PENDING ANALYSIS

Post-Audit Analytics

Diagnostic Engine Initialised

Please supply inputs to evaluate risk indices across substitution, MoO, and structural framework parameters.

Documentation Strength

Evidence Score: --%
Defensibility Score: --%
Indicator Evidence HMRC Would Expect
Substitution Contract clause, signed substitute agreement, timesheets of substitute.
Multiple Clients Invoices to different clients, concurrent contracts, bank statements.
Financial Risk Professional Indemnity Insurance schedule, documented rectification clauses.
Business Profile Live company website, active marketing footprint, dedicated office lease.

HMRC conducts compliance enquiries based on demonstrable facts, not just assertions. The Defensibility Score combines your working practices profile (75%) with your ability to evidence it (25%).

Run the assessment to generate your personalised contract improvement plan.

Run the assessment to view predicted HMRC compliance enquiry failure points.

Operating Outside IR35 Safely

Your assessment indicates an Outside IR35 status. This means you are recognised as an independent business providing a service, rather than a disguised employee. To maintain this status defensively against HMRC compliance reviews:

  • Maintain the Reality: Ensure your day-to-day working practices strictly mirror the independent clauses in your contract. Do not allow "scope creep" where you end up managing client staff.
  • Audit Trails: Keep records of any instances where you exercised autonomy, refused tasks outside your scope, or rectified errors at your own cost.
  • Business Investment: Continue to invest in your own company marketing, maintain independent insurance, and ideally service multiple clients across the tax year.

Navigating Borderline IR35 Status

Your assessment indicates a Borderline status. HMRC regularly scrutinises borderline relationships. To protect yourself:

  • Clarify Ambiguities: Review the areas in the Improvement Plan where your working practices may resemble employment (e.g., control over daily tasks).
  • Strengthen Business Profile: Ensure your limited company operates as a genuine enterprise with multiple clients, PI insurance, and marketing efforts.
  • Seek Professional Advice: A qualified accountant or IR35 specialist can help refine your contract and working practices to provide a clearer determination.

Understanding Inside IR35 Risks

Your assessment indicates an Inside IR35 status. This implies that HMRC would likely view you as an employee for tax purposes during an enquiry, subjecting your income to standard PAYE Income Tax and National Insurance deductions.

  • Review the Remediation Plan: Look at the Improvement Plan tab above. Can you negotiate the removal of control clauses or insert a genuine right of substitution?
  • Consider Umbrella Companies: If the client refuses to amend the working practices (e.g., they strictly require your personal service and control your daily tasks), operating via a compliant Umbrella Company is often the safest administrative route.
  • Financial Planning: Operating Inside IR35 significantly reduces your net take-home pay. You must factor this into your daily rate negotiations.

Important Disclaimer

This IR35 diagnostic tool is provided for indicative educational and informational purposes only. The generated scores, heatmaps, and remediation plans do not constitute formal tax, legal, or accounting advice. HMRC status determinations are highly nuanced and depend on the totality of specific contractual facts and actual working practices. Always consult a qualified contractor accountant, IR35 specialist, or employment lawyer before making financial decisions or signing contracts.

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What is IR35?

IR35, officially known as the Off-Payroll Working rules, is tax legislation introduced by HMRC to identify "disguised employees." These are individuals who operate via an intermediary—such as a personal service company (PSC) or limited company—to reduce tax liabilities, while working in a manner indistinguishable from permanent staff members.

Why does your IR35 status matter?

Your IR35 status fundamentally dictates how you are taxed. If you operate Outside IR35, you are treated as a genuine business. You can pay yourself a tax-efficient combination of salary and dividends. If your contract is deemed Inside IR35, you are taxed at source as an employee via PAYE, significantly reducing your net take-home pay.

Who does IR35 apply to?

The rules apply to any contractor, freelancer, or consultant providing services through their own limited company to an end client in the UK. Since the legislative reforms of 2017 (Public Sector) and 2021 (Private Sector), medium and large clients are responsible for determining your status, while small business contractors must still self-determine.

How does this assessment tool work?

This tool evaluates your working relationship against the core pillars established by decades of UK employment tribunals and case law precedent. It looks past the written contract to assess the day-to-day reality of your engagement, generating a defensibility score and actionable recommendations.

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