Many small businesses rely on specialist contractors for flexibility and skills. That remains a sound approach, but the tax position needs care. The UK’s IR35 and off-payroll working rules govern when a contractor should be taxed like an employee. Getting this right protects cash flow, avoids interest and penalties, and builds confidence with contractors and agencies.
This guide explains, in plain terms, how the rules apply in the 2025/26 tax year, what changed in April 2025, when those changes actually bite and how to set up simple, durable processes. It’s written for owner-managers and finance teams who want a practical reference they can use throughout the year.
If you’d like a light review of your current process, or a one-page policy and checklist tailored to your roles and supply chains, we can help you put that in place and reduce the admin burden.
Get in touch if you’d like tailored support in reviewing your contractor processes or setting up a clear IR35 and off-payroll working policy.
GUIDE: IR35 and off-payroll working