Remote contracting has grown substantially since 2020. Many IT contractors now work entirely from home or split their time between home and client sites. Remote working affects your expenses, your IR35 position, and the range of contracts available to you.
Finding remote contracts
Remote roles are now a permanent feature of the contractor market, particularly in software development, cloud engineering, data engineering, and DevOps. When searching for contracts, filter for remote or hybrid working arrangements. Be aware that "remote" sometimes means remote within the UK only, and some clients require occasional on-site attendance for key meetings or workshops.
IR35 and remote working
Working remotely can actually support an outside IR35 determination, as it demonstrates reduced client control over how and where you perform your work. If you set your own hours, use your own equipment, and work from your own premises, these are indicators of genuine self-employment. However, remote working alone does not guarantee outside IR35 status, as the overall working arrangement must still pass the standard tests.
Home office expenses
Remote contractors can claim a proportion of household expenses through their limited company. This includes a share of electricity, heating, broadband, and council tax based on the proportion of your home used for work and the hours spent working. Alternatively, HMRC allows a flat rate claim of £6 per week (£312 per year) without the need for detailed records.
Equipment and setup
Invest in a proper home office setup. A good monitor, ergonomic chair, and reliable broadband connection are essential. All equipment purchased for business use is a claimable expense through your limited company. Many contractors also invest in a dedicated phone line or VoIP service to maintain a professional separation between work and personal communications.
Staying visible and productive
Remote contractors need to be proactive about communication. Regular updates to stakeholders, active participation in video calls, and clear documentation of your progress help maintain strong client relationships and demonstrate the value you are delivering. This is especially important during contract renewal discussions.