ECH13345 - Particular Occupations: IR35 Service Company - Check of Status


If the checks of the IR35 legislation ECH13300 indicate employment status is an issue you should


  • (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
    • explore the status of the worker by fact finding in accordance with ESM0500 onwards
    • critically consider any claimed right of substitution in accordance with ESM0530 onwards

Where the review of status indicates the worker would have been treated as an employee if engaged directly, you should


  • liaise with the EST (Local Compliance) or
  • the Status Inspector (LBS) before

    • giving an opinion that the IR35 legislation applies
  • request computation of the deemed payment and secondary NICs
  • follow up the opinion and request in writing
  • be prepared to give guidance on the method of calculation of the deemed payment, see ESM3146.

If the status is borderline or any opinion is disputed you should


  • immediately refer the case to

    • the EST Local Compliance) in accordance with ECH6045, or
    • the Status Inspector (LBS)
  • maintain close liaison with the status team until the dispute is settled
  • (This text has been withheld because of exemptions in the Freedom of Information Act 2000)

When the status issues are settled the case will be returned to you for completion.

If a ruling is given that there are engagements within the IR35 legislation you will need to


  • carry out a check of the deemed payment ECH13350, and
  • seek recovery for earlier years if appropriate in accordance with ECH22000 onwards.