IR35 is not quite the same as whether someone is employed or a contractor - you could claim to be a self-employed contractor when working from home and IR35 wou

IR35 is not quite the same as whether someone is employed or a contractor - you could claim to be a self-employed contractor when working from home and IR35 would not apply. If you did that then it would be a question of whether you were employed or self-employed, and that would determine which forms of national insurance contributions were paid (your income tax would remain the same). IR35 was introduced to stop contractors from setting up a limited company and then having the company contracted instead of the individual. The individual would then take dividends out from the company, which are taxed at a lower rate and not subject to national insurance. http://www.hmrc.gov.uk/ir35/ http://www.hmrc.gov.uk/ir35/