Getting yourself IR35-ready in Worksome
1. Head to your IR35 settings in Worksome
(Tip: click the menu on your profile photo, in the bottom left-hand side corner)
2. Complete your default answers for IR35
The answers you provide here will be automatically applied to IR35 Status Determinations on new contracts. If your situation changes you should go back and review your default answers.
(Tip: Select the question mark for a helpful definition of the questions)
It's important to note that IR35 status for your Worksome contracts is assessed individually per contract, and not globally across your account. This allows for a tailored evaluation of each working relationship, ensuring compliance with HMRC regulations.
The last question here, regarding Professional Indemnity (PI) insurance, refers to whether you have personal insurance or not. If you do, you will just need to attach proof of your PI insurance policy.
If you are operating through an LTD and therefore subject to IR35, we do recommend having your own PI insurance, as it will support your case in the IR35 determination, that you are in fact self-employed.
It's important that you keep your answers to IR35 questions up to date, so you should review the questions regularly and update your answers if anything changes. This ensures that your IR35 status is fairly assessed on a case-by-case basis.
Determining the IR35 Status of your Contract
1. IR35 status on your Contracts
When you are offered a contract in Worksome, that is subject to IR35, your client will have a set of questions to answer about the work. This, combined with the default answers you have provided above, will create the Status Determination result.
You will be able to see the IR35 details in your Conversation for your job in Worksome:
Important Note: Once your client has fully completed the Status Determination for your contract, this section will update to show you the determination result.
Hit Review and Accept Contract to review the contract terms:
2. Accepting the Contract
Here you can review the contract details, and accept:
3. Status Determination Statement (SDS)
Once you have accepted the contract, you'll be able to download the Status Determination Statement (SDS).
If the SDS result shows as 'Pending', your client hasn't completed the determination yet:
If the SDS result shows as 'Determination Done', you will be able to download a copy of the statement:
The SDS provides a detailed summary of the IR35 assessment conducted by the client, including reasoning and evidence used to arrive at the determination. This document is crucial in ensuring transparency and legal compliance between both parties.
Once the determination is complete, and you have accepted the contract, you can submit payment requests directly through the Worksome platform. Detailed guidance can be found here: How to create a payment request.
If you have more questions about IR35, check out our dedicated FAQs: Worksome's IR35 Guide for External Workers
Note: If you disagree with the IR35 determination result, and can produce material evidence to support your grounds for a revised determination, you can file a dispute. Follow the guide below:
Procedure for disputing an IR35 INSIDE determination
FAQs:
Q: Can I mark my Worksome account as 'Outside IR35' by default?
A: No, IR35 determinations are made on a per-contract basis. Each contract requires individual assessment to determine its IR35 status.
Q: What happens after I submit a payment request for an 'Outside IR35' contract? A: Worksome generates an invoice copy for you once the request is approved. This removes the need for freelancers to manually create and submit invoices.