IR35 for tradespeople: what you need to know in 2026
Confused about IR35? You are not alone. Here is a plain English guide to what it means for self-employed tradespeople and what you actually need to do.
What is IR35?
IR35 is HMRC legislation designed to stop people working as self-employed contractors when, in practice, they are working like an employee.
If you are a self-employed tradesperson working directly for homeowners and small businesses, IR35 almost certainly does not apply to you. Most tradespeople can stop reading here.
But if you work through a limited company, take long-term contracts with a single client, or work on large construction sites — read on.
When IR35 applies to tradespeople
HMRC looks at three main factors:
Control: Does your client tell you exactly how, when and where to do the work? Or do you decide that yourself?
Substitution: Can you send someone else to do the job if you are not available? Or must it be you personally?
Mutuality of obligation: Does the client have to offer you work and do you have to accept it?
If the client controls how you work, you cannot substitute yourself, and there is an expectation of ongoing work — HMRC may view you as an employee rather than self-employed.
The practical impact
If HMRC decides you fall inside IR35, the engager (your client) becomes responsible for deducting PAYE tax and National Insurance from your payments — as if you were an employee.
For large construction contracts and public sector work, the client is responsible for determining your IR35 status. For private sector contracts below £10.2m turnover, you determine your own status.
What most self-employed tradespeople should do
Keep working as you are. If you work for multiple clients, decide your own working methods, use your own tools, and can substitute someone else for jobs — you are almost certainly outside IR35.
Get a contract in place. A written contract that reflects your actual working arrangements protects you. It should clearly state you are an independent contractor, can substitute, and are not entitled to employee benefits.
Talk to an accountant if you are unsure. An hour with a good accountant costs less than an IR35 investigation.
Note: This article is for general information only and does not constitute financial or legal advice. Always consult a qualified accountant or tax adviser for your specific situation.
Write professional messages in seconds.
Drafted writes professional quotes, invoices and replies for UK tradespeople — free to download.
Download Drafted