IR35 Reforms and Contracting for an International Business

If you are a contractor for an international business, then you need to be aware that new IR35 guidance was issued by the Treasury yesterday.

Government guidance on the reforms previously said that where there was a UK contractor, UK agency and overseas end hirer, there was still a requirement to get an Status Determination Statement (SDS) from that end hirer. This would be difficult to do and it’s hard to see how HMRC would enforce action for non-compliance.

Yesterday’s implementation review stated that if the end client is outside the UK and has no UK presence (e.g. a UK office or similar), then the new rules do not apply.

This is a welcome adjustment and will make contracting for an overseas end user more attractive for freelancers.

You can view the draft Employment Status Manual here.

For more information or clarification on any aspect of the IR35 reforms, please get in touch.