IR35 Qualifying Conditions

Does My Limited Company Meet the IR35 qualifying conditions?

If your services are supplied through a company, and the company does not meet the definition of a Managed Service Company, the IR35 rules apply if:

• you (or your family*) control more than 5 per cent of the ordinary share capital of the company, or
• you (or your family*) are entitled to receive more than 5 per cent of any dividends from the company, 
• you receive, or could receive, payments or benefits from the company which are not salary, but could reasonably be taken to represent payment for the services you provide to clients.

If your services are supplied through a partnership of which you are a partner, and the partnership does not meet the definition of a Managed Service Company, The IR35 rules apply if:

• you (or your family*) are entitled to 60 per cent or more of the profits of the partnership, or
• all or most of the partnership's income comes from providing services to a single client, or
• the profit sharing arrangements in the partnership are designed to ensure that you receive an amount based on the payments received for your services to clients.

(* family includes an unmarried partner)