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IR35 Risk Check
Get an instant IR35 risk assessment for any contract — in plain English, not legal jargon.
What It Does
- Quickly assess new contracts for potential IR35 risks before signing.
- Review existing contracts to ensure ongoing compliance and identify areas for improvement.
- Understand the specific factors that influence IR35 status and how to mitigate them.
When would you use this?
You've just received a new contract from a potential client and want to quickly understand its IR35 implications before committing. You need to know if it's likely to be inside or outside IR35 and what specific clauses might be problematic.
Example Output
What you enter
Contract for a Senior Software Engineer position with a client based in the UK. The contract specifies a fixed project fee, no sick pay or holiday pay, and the engineer is responsible for their own equipment and professional development. The contract also states that the engineer can substitute another person to perform the services, but only with prior written consent from the client. The client provides a desk at their office, but the engineer primarily works remotely. The engineer is expected to attend weekly team meetings but has autonomy over how and when the work is performed, as long as deadlines are met.
What you get
IR35 Risk Rating: Borderline Key Risk Factors: - Substitution Clause: While present, the requirement for prior written consent from the client weakens its effectiveness. A truly outside IR35 contract would allow for unfettered substitution. - Client Provided Equipment/Desk: Although primarily remote, the provision of a desk at the client's office could suggest a degree of 'being part of the organisation'. - Weekly Team Meetings: Regular attendance at client meetings, while common, can sometimes indicate a 'part and parcel' relationship, suggesting employment. Recommended Actions: - Strengthen the substitution clause to allow for substitution without client consent, or at least with minimal notification. - Ensure the contract explicitly states that the contractor is not provided with client equipment or office space, or if provided, it is for convenience and not a requirement. - Clarify the nature of team meetings to be project-specific updates rather than general employee-style gatherings. Emphasise autonomy in working methods. - Consider adding clauses that highlight business on own account, such as marketing efforts, other clients, and financial risk. This assessment is for guidance only and does not constitute legal advice. Always seek professional legal counsel for definitive IR35 status determination.
This is what ClearNextAI generated. You'd use it as-is or tweak it in 60 seconds.
Who Uses This Tool
About the IR35 Risk Check
The IR35 Risk Check is a straightforward tool designed to give UK-based freelancers, contractors, and small businesses a clear, instant assessment of their IR35 risk. In simple terms, it helps you understand whether a specific contract is likely to be viewed as employment by HMRC, which has significant tax implications. For any UK business engaging in contract work, using a reliable IR35 checker free of legal jargon is an essential first step in due diligence.
You need this tool whenever you are about to sign a new contract or want to review an existing one. It’s particularly crucial for UK businesses operating in professional services, consultancy, and creative industries where contract-based work is the norm. The tool is designed to catch common pitfalls, such as restrictive substitution clauses or clauses that imply a level of control inconsistent with a genuine business-to-business relationship. Knowing your IR35 status upfront helps you negotiate better terms and avoid unexpected tax bills down the line.
A good output from the IR35 Risk Check provides not just a "inside" or "outside" rating, but a breakdown of the key risk factors. It will highlight specific clauses in your contract that are problematic and suggest concrete actions to mitigate those risks. For example, it might recommend strengthening the substitution clause or clarifying the terms of equipment provision. This level of detail empowers you to have informed conversations with your clients and make necessary adjustments to your contracts.
One of the most common mistakes this tool helps you avoid is accidentally accepting a contract that makes you an employee in all but name. Many freelancers wonder, "am I inside IR35 UK?", and this tool provides a clear, evidence-based answer. It helps you steer clear of vague or boilerplate contracts that can create ambiguity and risk. By using the IR35 Risk Check, you can ensure your contracts accurately reflect a true freelance relationship, protecting your business and your financial independence.