# What is ir35?

Source: https://launch-rec.com/glossary/ir35. Category: Compliance. Market: UK.

Also called: off-payroll working rules.

## Definition

UK off-payroll working rules that decide whether a contractor working through their own company should be taxed as an employee.

## In practice

For medium and large private-sector clients, the client makes the status determination and the fee-payer — usually the agency — deducts tax if the engagement is inside IR35.

Agencies sit in the middle of the liability chain, so status determination statements, contract wording and working-practice evidence need to be filed, not assumed.

## Related terms

- https://launch-rec.com/glossary/worker-classification
- https://launch-rec.com/glossary/umbrella-company
- https://launch-rec.com/glossary/paye