IR35

THE TRAP FOR CONTRACTORs

Tax like staff, rights like none

The right structure for creatives; tax-efficient, protected, IR35-compliant. Rules change, The3Key stays current.

Avoid IR35 trouble
Don’t Get Caught Out
Correct Structure, Zero Risk
No HMRC Gotchas

WHAT IS IR35 and why it matters to you

Employee or contractor? HMRC says

IR35 decides if contractors should be taxed like employees, stopping disguised employment and ensuring fair tax.

Hide and seek

Inside or outside IR35: understanding your status

choices, choices

Inside IR35: you’re taxed like an employee; PAYE deductions, no perks. Outside IR35: you’re self-employed; pay via dividends and salary for better tax efficiency.

Who Calls the shots

BEHIND THE IR35 DECISION

The3Key handles HMRC directly

IR35 is judged on how you work. The client makes the first call, but HMRC can challenge it and your contract must support it. If your setup shifts, your status can shift too.

Avoid IR35 trouble
Client responsibility

The client sets the initial status for the role.

Your working practices

How you work day to day can override the contract.

Contract evidence

Clear, specific terms help defend your status.

HMRC oversight

HMRC can review and change the decision anytime.

handle IR35 BEFORE it takes you down

We’ll review your position and tell you exactly where you stand.

Talk to us
Four steps

The employment tests

How HMRC decides your status

Control:

More client control (how/when/where you work) = likely inside IR35. More autonomy = likely outside.

Substitution:

If you can send a qualified substitute, you’re likely outside IR35, real substitution signals genuine self-employment.

Obligation:

If you're expected to keep taking work and the client to keep offering it, that’s mutuality of obligation.

how they decide

HMRC checks your contract and how you really work. Passing some tests doesn’t guarantee status.

Financial Clarity

Tax implications of being inside IR35

We turn your figures into insight

Xero and FreeAgent create standard reports. The3Key configures them to show what matters: profit, cash flow, balance sheets, projects, VAT, and tax forecasts.

Profit That Makes Sense

Real-time profit and loss statements show what’s coming in, what’s going out, and which projects actually make money.

Cash Flow You Can Predict

Know when money’s arriving or leaving, no surprises, no scrambling to cover costs.

Tax and VAT, Sorted

Accurate VAT returns ready for MTD and live tax forecasts that estimate what you’ll owe before HMRC does.

Custom Charts for Creatives

The3Key builds a Chart of Accounts, separating projects, retainers, royalties, and expenses so you see exactly what drives profit.