Can IR35 status change over time?

IR35 status can change if the nature of the contractual and working relationship between the worker and the company changes. It is, therefore, sensible to monitor your contractors regularly to check their status and collate evidence.

The nature of the working relationship between the contractor and the end client can change, and this can have an impact on the IR35 status of the contractor.

For example, if the contract is loosely and widely drafted and the end client begins to exercise more control over the way the work is performed, this could indicate that the contractor is moving inside IR35.

It is essential to regularly review and assess IR35 status to ensure compliance with the legislation and to minimise the risk of future tax bills and penalties for non-compliance.