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IR35 Compliance Checklist for Contractors

This checklist covers the key factors that influence your IR35 status. Review each point against your current engagement and take action where needed to strengthen your position.

Contract terms

  • Your contract includes an unrestricted right of substitution
  • There is no mutuality of obligation beyond the current engagement
  • The contract specifies deliverables or project outcomes rather than hours of attendance
  • You have the right to work for other clients simultaneously
  • Either party can terminate with a short notice period (typically two to four weeks)
  • The contract does not include employee-type benefits such as holiday pay, sick pay, or training programmes

Working practices

  • You decide how to complete the work, not the client
  • You are not subject to the same supervision, direction, or management as permanent staff
  • You set your own working hours (even if you choose to align them with the client's office hours for practical reasons)
  • You use your own equipment where practical (laptop, software licences, phone)
  • You are not required to attend social events, team-building activities, or company all-hands meetings
  • You are not included in the client's organisational chart, internal promotion processes, or performance reviews

Business independence

  • You have a registered limited company with a separate business bank account
  • You carry professional indemnity insurance
  • You have (or are willing to have) more than one client, even if not simultaneously
  • You market your services independently (website, LinkedIn profile, agency registrations)
  • You bear financial risk, such as fixed-price work or liability for errors
  • You have a business plan and maintain separate business records

Documentation

  • You have a Status Determination Statement (SDS) from the end client confirming outside IR35
  • You retain copies of all contracts, SOWs, and correspondence about IR35
  • You have an independent IR35 review from a qualified specialist
  • You keep records of any substitution, multiple client work, or other evidence of self-employment

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