From 6th April 2020, most private sector companies that engage limited company contractors, whether directly or via an agency, became legally responsible for determining the tax status (known as ‘IR35’) of those assignments.

IR35 refers to HMRC’s ‘test’ for self-employment for tax purposes, only when contractors supply services using a limited company set-up, normally referred to as a personal service company or PSC. Working through a PSC does not, in itself, mean that a contractor is self-employed.

The IR35 framework is designed to prevent “disguised employment”, whereby a company engages PSC contractors who work in the same way as employees, but who through using a PSC rather than being engaged under PAYE, pay less tax. The legislation is therefore designed to determine which PSC contractors are genuinely self-employed, and which are actually employed (for tax purposes only).

PSC contractors who are determined to be employed for tax purposes (referred to as ‘Inside IR35’), must pay income tax and National Insurance Contributions (NI) on the entire assignment income, just as an employee would.

PSC contractors who are determined to be truly self-employed (or ‘Outside IR35’) are not required to pay income tax or NI on the assignment income. Generally, the contractor will take the majority of assignment income in the form of dividends instead (which are subject to a lower tax rate).

It is important to note that IR35 only applies to contractors who operate through a PSC. The rules do not apply to PAYE contractors, umbrella contractors or sole traders.

You might be thinking…

  • I don’t understand IR35
  • We don’t engage with that many contractors

We’ll help you navigate the minefield of IR35

  • Education – We provide half-day or full-day onsite education sessions to give your business more detail about the changes and what they mean for you.
  • Identifying risks – We offer both IR35 and wider scope audits to determine your current areas of risk whether you have one or multiple contractors providing you with services.
  • Best practice – We have devised a practical set of working arrangements for engagers that, when implemented, will maximise the number of genuinely self-employed contractors you engage. Also included are new terms and conditions – with contractors and with agencies – that support those working arrangements. This service can be tailored to your specific business.
  • Supplier due diligence – Supporting your business with in-depth checks on current or new agencies, umbrellas and/or accountancy firms to ensure you are using compliant, knowledgeable, trustworthy partners.
  • Bespoke consulting – a fully tailored, in-depth consulting service to lead and project manage all your IR35 activities, helping you with strategic decision-making, implementing suitable processes to engage and work with contractors, assessing all your contract roles, making changes to supply types as needed and communicating activities and outcomes to the supply chain.

Our approach to helping you with your IR35 compliance


Scoping call

Simply book a call with us and one of our experts will talk you through our IR35. We’ll need to build a good understanding of your business, your market and the way you would like to deal with your contractors to understand the level of support required.



We’ll set out our fixed fee and timescales for helping you with the chosen solution. We like to keep this short and straight to the point so you can make a quick decision to instruct us.


Preparing the draft

Once you’ve instructed us, we’ll go ahead and prepare the solution, which will take into account the key points discussed during the scoping call.


Taking you through the terms

Once our expert has finished the first draft, they’ll take you through the elements to make sure you’re happy and clear with all the contents, the tone of voice and the format of the documentation. From there, we can make further adjustments before sending you a final version ready to use.

Client Reviews

< Swipe >

Excellent service. Helpful experts who are responsive and speak in plain English! Can’t recommend enough

Agency Owner

Hybrid have been fantastic for my firm. The advice and work they completed was outstanding. I wouldn’t hesitate to recommend…

Accountancy Practice

Fast, sensitive and concise advice at a reasonable cost and at a difficult and complicated time for our Company and…

Travel Consultancy

We found the Redundancy Pack really helpful; it certainly fleshed out some of the bones we were aware of and…

Electronics Manufacturer
5 stars

Great quality work, turned around with speed and professionalism. Thoroughly recommended.

Astrid Davies Consulting
5 stars

Forward thinking legal services for business owners. Ryan and Jonathan are fantastic, I would highly recommend!

The Mortgage Hut
5 stars

Hybrid Legal helped me immensely when I was lost in the jargon of legal property rights for artists. I found…

Rebecca Wootton
5 stars

They’ve been brilliant from the outset.

Boxxfresh Limited
5 stars

I will definitely be using this service in future.

5 stars

Incredibly efficient, friendly and professional service. All my questions answered thoroughly, promptly and clearly. Having a fixed fee ensured great…

Kathryn Hay
5 stars

Professional friendly experts who offer timely understandable advice and are excellent value for money.

Dartington Hall Pension Trustees Limited
5 stars

Fantastic, progressive law firm – they have all the answers!

Indigo Press Limited
5 stars

Hybrid give honest and straightforward advice and support, even if their recommendation means that no service would be required. Hybrid…

Malum Limited
5 stars

A great team of people, who gave me quick and really useful advise. Highly recommend.

Boon Online
5 stars

The service we received was excellent and quick.

Fermac Cargo United Kingdom Limited
5 stars

Well thought out guidance and friendly competent service, firstly from Freya and latterly Ryan. Will be using Hybrid Legal again.

Candy Tours Limited
5 stars

Jonathan was excellent throughout our GDPR health check. He was always quick to return communications and the service was very…

Tom Perris
5 stars

Fantastic service.

Par8tus Finance
5 stars

A pleasure to work with.

Anglepoise Limited
5 stars

Highly recommended!

Evolve Websites Limited
5 stars

I cannot recommend this firm highly enough.

Sam Howell Limited
5 stars

Hybrid Legal are a great company to work with.

St. James’s Place Wealth Management Plc
5 stars

Very professional approach, a really great team.

Trowtronics (UK) Limited
5 stars

Hybrid Legal are first class in business Law.

Gripclad Limited
5 stars

The service we received was efficient and much care was taken to understand our specific requirement to ensure that the…

WMBA Limited
5 stars

Hybrid Legal are a fantastic company to work with and offer first class legal advice. The team are a friendly…

Chris B
5 stars

Hybrid were very helpful and understanding throughout, with great communication. Thoroughly recommend.

Quadrant Safety Limited
5 stars

Everyone we deal with provides a very human experience.

Brand Biology Limited
5 stars

Hybrid Legal are a really reliable, clued up bunch, that it pays to have on your side. They’ve helped us…

Freestyle Web Design Limited
5 stars

Highly recommended and a law firm I shall be doing business with.

Roxie Morris
5 stars

Thank you for taking the time to explain every step of the process to me and ensuring we found the…

Martina Kerr
5 stars

We would like to thank Hybrid Legal for their amazing work. We will 100% be using them again and are…

CB Media Group Limited
5 stars

Alan and his team have given me support and advice well beyond what I’d anticipated at a very reasonable price.

DK Lawn & Order Gardening Services Limited
5 stars

Ryan and the team have been fantastic for my firm.

J Williams & Co Limited
5 stars

It has been great to know the Hybrid legal team, they feel like an extension of our own team.

Rees Leisure Limited
5 stars

Hybrid Legal were recommended….for a transfer of ownership and did a first class job.

AMFA (Southampton) Holdings Limited
5 stars

The Hybrid team gave me excellent advice on resolving an employment contract, I will definitely be using them in the…

Carl Wynn
5 stars

I would thoroughly recommend their services.

Hampshire Golf Union
5 stars

Really good people. Service I asked for was done quickly and at a very good price which they recognised was…

Dom Kay
5 stars

I highly recommend.

Big Golden Pineapple Limited
5 stars

We would not hesitate in using again or recommending.

Spitfire Shoot Limited
5 stars

A really good team – responsive, professional and friendly. Far better value than a conventional law firm.

Herminius Holdings Limited
5 stars

Straightforward and to the point.

Verina Daly Care Limited
5 stars

We are very happy with the services received and would recommend to other companies.

The Highfield Recruitment Company Limited
5 stars

Superb service, very highly recommended!

One Wight Health Limited
5 stars

Dynamic & forward-thinking.

SGW Accountancy Services Limited
5 stars

Hybrid Legal are awesome. Being a bit of a difference in our industry, our clients aren’t looking for your typical,…

Diverso Accountants Limited
5 stars

I particularly like the way that they demystify complex legal terms and provide easy to follow advice for our contract…

I.T. Dev Limited
5 stars

I simply cannot recommend Hybrid enough.

ClearMotion (UK) Limited
5 stars

Hybrid Legal provided excellent value for money when we were researching the market for new contracts to be devised. Professional…

JL Corinthian Limited
5 stars

I will have no hesitation in using or recommending to other businesses.

Pure Human Resources Limited
5 stars

A very professional team and highly knowledgeable.

Summit Safety Solutions Limited
5 stars

They are always prompt, professional and very helpful. They moved quickly and produced exactly what I wanted first time. I…

Smarter Financial Services (Holdings) Limited
5 stars

Using Hybrid Legal won’t cost you the earth. I am extremely satisfied with the work they have done so far…

Cliphair Limited
5 stars

Hybrid Legal are superb! Excellent legal advice from start to finish. The team are really friendly, respond quickly and deliver…

Just Add Treviss
5 stars

The Hybrid Experts

Bernie Payne Senior Associate
Ryan Lisk Founder