IR35 Disclaimer

What is IR35?

IR35 refers to the off-payroll working rules (Chapter 8, ITEPA 2003) designed to ensure that individuals who work like employees but through their own company pay broadly the same tax and National Insurance as employees.

These rules apply to engagements where an individual provides services to a client through an intermediary (such as a personal service company) but would be considered an employee if working directly.

Employment Status Determination

For medium and large companies, the client (not the contractor) is responsible for determining IR35 status and must provide a Status Determination Statement (SDS) before the engagement begins.

Key factors considered include:

• Control over how, when, and where work is performed
• Right of substitution (ability to send someone else to do the work)
• Mutuality of obligation (ongoing commitment between parties)
• Integration into the client's business
• Financial risk and responsibility for equipment

fractional.quest's Role

fractional.quest provides search and placement services but:

• Does not determine IR35 status for any engagement
• Does not provide tax or employment law advice
• Cannot guarantee any particular IR35 outcome
• Recommends all parties seek professional advice

The responsibility for IR35 determination and compliance lies with the engaging parties and their professional advisors.

Fractional Executive Considerations

Fractional executives typically work across multiple clients, which may support outside IR35 status. However, each engagement must be assessed individually based on:

• The specific terms of the engagement
• The working practices and relationship
• The degree of control and independence
• The commercial structure of the arrangement

Professional Advice

We strongly recommend that all parties involved in fractional arrangements seek professional advice from:

• Qualified accountants with IR35 expertise
• Employment law specialists
• Tax advisors familiar with off-payroll working rules

HMRC provides guidance and tools, including the CEST (Check Employment Status for Tax) tool, though these should not replace professional advice.

Limitation of Liability

fractional.quest accepts no responsibility or liability for any IR35 determinations, tax liabilities, or employment status assessments. All information provided is for general guidance only and does not constitute professional advice.

Useful Resources

• HMRC Off-payroll Working Guidance
• HMRC CEST Tool
• HMRC Employment Status Manual

Contact

For questions about this disclaimer, contact us at hello@fractional.quest