Bite Size IR35: Are You Exclusive?

It is generally seen that permanent employees tend to work for one employer whereas contractors take on multiple clients simultaneously and so it was presumed that contractors working exclusively for one client were likely to be a disguised employee. This test has become less and less relative to determining IR35 status, however, as employees can often have two jobs and contractors can just as well work full time on a single contract without being any more alike to their permanent counterparts.

Although working for a single client is no longer seen as indicative of disguised employment, it is still important that contractors hold the right to take on other contracts on a concurrent basis. It is generally acceptable for a contract to contain clauses forbidding contractors to take on contracts with the client’s direct competitors or which create a conflict of interests.

It is once again important to remember that this test alone will not determine your overall status, as a complete overview of your situation is required to come to a valid conclusion on your employment status.

By:Jane Hailstone

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