{
  "id": "legal/uk-employment-status-ir35",
  "signature": "AI tells a UK contractor that using a limited company (PSC) automatically avoids IR35 tax rules",
  "signature_zh": "AI告诉英国承包商，使用有限公司（PSC）自动避免IR35税务规则",
  "regex": "IR35.*limited.*company|PSC.*tax|outside.*IR35.*automatically",
  "domain": "legal",
  "category": "tax_error",
  "subcategory": null,
  "root_cause": "IR35 (Intermediaries Legislation) applies when a contractor would be an employee if directly hired; using a Personal Service Company (PSC) does not exempt the contractor from deemed employment tax and NI; HMRC determines status based on working practices, not corporate structure.",
  "root_cause_type": "generic",
  "root_cause_zh": "IR35（中介机构立法）适用于如果直接雇佣则承包商将成为雇员的情况；使用个人服务公司（PSC）并不能免除承包商的视同雇佣税和国民保险；HMRC根据工作实践而非公司结构确定身份。",
  "versions": [
    {
      "version": "hmrc_guidance",
      "introduced": null,
      "deprecated": null,
      "removed": null,
      "behavior_change": null,
      "status": "active"
    },
    {
      "version": "off_payroll_rules",
      "introduced": null,
      "deprecated": null,
      "removed": null,
      "behavior_change": null,
      "status": "active"
    }
  ],
  "os_specific": {},
  "dead_ends": [
    {
      "action": "Using a generic contract template from an online source without an IR35-specific review",
      "why_fails": "HMRC looks at actual working conditions (control, substitution, mutuality of obligation), not just contract wording; a standard template often fails the status determination test.",
      "fail_rate": 0.8,
      "condition": "",
      "sources": []
    },
    {
      "action": "Setting up a limited company but still working exclusively for one client with office hours and line management",
      "why_fails": "This creates an employment-like relationship; HMRC will deem the contract inside IR35 regardless of corporate structure.",
      "fail_rate": 0.9,
      "condition": "",
      "sources": []
    }
  ],
  "workarounds": [
    {
      "action": "Conduct an IR35 status determination using HMRC's Check Employment Status for Tax (CEST) tool: https://www.gov.uk/guidance/check-employment-status-for-tax. If inside IR35, operate payroll via the agency or umbrella company.",
      "success_rate": 0.85,
      "how": "Conduct an IR35 status determination using HMRC's Check Employment Status for Tax (CEST) tool: https://www.gov.uk/guidance/check-employment-status-for-tax. If inside IR35, operate payroll via the agency or umbrella company.",
      "condition": "",
      "sources": []
    },
    {
      "action": "Restructure the contract to include genuine substitution clause, no mutuality of obligation, and no control over how/when work is done. Example: 'The Contractor may provide a substitute at their own expense, subject to reasonable client approval.'",
      "success_rate": 0.75,
      "how": "Restructure the contract to include genuine substitution clause, no mutuality of obligation, and no control over how/when work is done. Example: 'The Contractor may provide a substitute at their own expense, subject to reasonable client approval.'",
      "condition": "",
      "sources": []
    }
  ],
  "workarounds_zh": [
    "Conduct an IR35 status determination using HMRC's Check Employment Status for Tax (CEST) tool: https://www.gov.uk/guidance/check-employment-status-for-tax. If inside IR35, operate payroll via the agency or umbrella company.",
    "Restructure the contract to include genuine substitution clause, no mutuality of obligation, and no control over how/when work is done. Example: 'The Contractor may provide a substitute at their own expense, subject to reasonable client approval.'"
  ],
  "transition_graph": {
    "leads_to": [],
    "preceded_by": [],
    "frequently_confused_with": []
  },
  "official_doc_url": "https://www.gov.uk/guidance/understanding-off-payroll-working-ir35",
  "official_doc_section": null,
  "error_code": "HMRC_IR35_MISCLASS",
  "verification_tier": "ai_generated",
  "confidence": 0.87,
  "fix_success_rate": 0.82,
  "resolvable": "partial",
  "first_seen": "2023-11-01",
  "last_confirmed": "2024-06-01",
  "last_updated": "2024-06-01",
  "evidence_count": 1,
  "tags": [],
  "locale": "en",
  "aliases": []
}