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As set out in the Indirect and third party relationships ― overview guidance note, different rules apply according to the type of engagement with a worker and the type of client the work is performed for.

This note looks at the situation where:

1. •

   a client is in the private sector and deemed to be ‘small’ by the relevant legislation

2. •

   a client is hiring a worker via a third party (known as an intermediary) to carry out some work

3. •

   the worker carrying out the work is not an employee

This type of engagement is covered in the legislation by a chapter called ‘Workers’ services provided through intermediaries to small clients’ which can be found in ITEPA 2003, ss 48–61. This type of engagement is often referred to as ‘off-payroll working’ or ‘IR35’. This note will use the term ‘off-payroll working for small clients’