A well-drafted freelance agreement is essential protection for both client and contractor. IR35 compliance is critical — getting it wrong can result in significant HMRC penalties.

• IR35 status must be assessed by medium/large private sector clients since April 2021
• Three key IR35 tests: personal service (substitution), control, mutuality of obligation
• Status Determination Statement (SDS) must be issued by the client
• If inside IR35, client or fee-payer deducts PAYE and NI before payment
• Contractors should consider working through a limited company
• Working Time Regulations do not generally apply to genuine contractors
• HMRC CEST tool is available but not always accurate or definitive
• Contractor retains copyright and IP unless expressly assigned in the contract

Legal reference: IR35 (Chapter 8 & 10 ITEPA 2003); Working Time Regulations 1998; Copyright, Designs and Patents Act 1988