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UK Recruitment Glossary

IR35

Alex By Alex · 12-year UK recruiter · Updated April 2026

In recruiter context

Inside IR35 means HMRC treats you as employed for tax purposes — full PAYE, no expenses, more tax. Outside IR35 means genuine self-employment with all the tax efficiency. Since 2021 the client (not the contractor) decides the status for medium and large UK employers. If you're contracting in the UK, the IR35 determination is the single biggest line in your take-home calculation.

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