IR35
UK rules determining whether a contractor is genuinely self-employed or effectively an employee for tax.
IR35 (off-payroll working rules) targets “disguised employment”, where someone works like an employee but bills through a company to reduce tax. Getting contractor status wrong creates tax liabilities. Startups using contractors should understand the rules.
Examples
A startup assesses IR35 status before engaging a long-term contractor. — A contractor inside IR35 is taxed like an employee.
How it relates to The Startup Foundry
Sound employment practices reduce risk in due diligence — keeping you investable.