IR35 in the private sector

The off-payroll working rules (commonly known as IR35) are intended to make sure that individuals who supply their services to clients through an intermediary (such as a limited company) but whose working arrangements are equivalent to those of an employee, pay broadly the same amount of income tax and National Insurance contributions (NICs) as comparable employees.

Compliance with these rules was historically very poor until the responsibility for applying them within the public sector was shifted from the individual and their personal service company (PSC) to the organisation, agency or other third party engaging the worker.