Small Company Exemption

Short Definition: Exclusion of small businesses from IR35 reforms.

Long Definition: Under the IR35 off-payroll rules, small companies in the private sector are exempt from determining contractors' IR35 status. Contractors working with small businesses retain the responsibility for assessing their own status. A small business is defined under the Companies Act 2006 as meeting at least two of the following criteria: turnover below £10.2 million, assets under £5.1 million, or fewer than 50 employees.