Off-Payroll Working
The official HMRC term for the IR35 Chapter 10 rules — shifting status determination responsibility to medium/large end clients since April 2021.
Off-payroll working is HMRC's official description for the rules in Chapter 10 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003) — commonly called IR35.
The term specifically refers to the reformed rules introduced for public sector engagements in April 2017 and extended to medium/large private sector in April 2021. Under these rules, the end client (not the contractor) is responsible for determining employment status and issuing a Status Determination Statement.
The rules only apply where a contractor works through an intermediary (typically a limited company). Umbrella workers are already employed on PAYE and are not subject to the off-payroll rules.
Small private sector clients are exempt — contractors working for small companies still self-assess their own IR35 status.