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Jargon Buster

Disguised employee // a limited company contractor whereby IR35 applies i.e. being inside IR35.

End client/user // the company/organisation for which the contract is ultimately fulfilled.

Genuine contractor // a limited company contractor whereby IR35 does not apply i.e. being outside IR35.

Intermediaries legislation // a piece of tax legislation implemented to tackle the tax avoidance of limited company contractors who should be classed as, and taxed like, a permanent employee of their end client.

Substitute // an alternative worker who undertakes the operation of a contract if required.


Arguable point // reasoning which may cause an exception to the general rule, usually when discussing status tests.

Confirmation of arrangements // a written document which confirms the way in which a contractor operates on a day-to-day basis from the end client.

Inside IR35 // a limited company contractor whereby IR35 applies i.e. a disguised employee.

Outside IR35 // a limited company contractor where IR35 does not apply i.e. a genuine contractor.

Status Tests // the method of deciding on whether a limited company should be considered a disguised employee or a genuine contractor.