IR35 Statement of Work guidance updated

HMRC has updated its off-payroll guidance to clarify the situation around IR35 Statement of Work, according to a new article.

The ContractorUK piece says the update puts it beyond doubt that SoW are not a ‘silver bullet’ on IR35 which lets contractors and clients ‘off the liability hook.’


IR35 Statement of Work arrangements, also known as which started being widely adopted a year ago despite warnings of a misperception of the rules.

ContractorUK says that last week HMRC announced that ‘arrangements are being put in place’ that mean some clients believe they are ‘no longer responsible for considering’ the IR35 rules reform that came in for the private sector on April 6th.


In the article, Carla Roberts of WTT Legal reflects on how the HMRC update largely reiterates the department’s previous guidance on contracting out services.

She is quoted as saying that where the parties engage in a ‘genuine’ contracted-out service, the ‘client’ for the purposes of the rules will be the service provider rather than the end client.


The ContractorUK article states that HMRC’s update implies not every IR35 Statement of Work is genuine and that it is important to ‘be especially cautious of any that claim you do not need to consider the off-payroll working rules’.

It continues by quoting HMRC as saying: ‘Whether a contract is for a fully contracted out service is a question of fact and where there is uncertainty as to who the true client is, considerations should be given to the nature of the contractors and working practice.’

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