IR35 Glossary: Your Guide to Key Contracting Terms

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SDS (Status Determination Statement)

A formal IR35 status decision issued by a client.

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Self-Assessment

A tax return system for self-employed individuals.

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Self-Employment

Working independently without employment ties.

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Small Company Exemption

Exclusion of small businesses from IR35 reforms.

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Sole Trader

An individual running a business alone.

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Statement of Work (SOW)

A document outlining deliverables for a project.

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Status Tests

Criteria used to assess IR35 status.

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Statutory Payments

Legal entitlements paid to employees.

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Substitution

The ability of a contractor to provide a replacement to perform work.

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