Legal
How to Assess IR35 Status for UK Contractors
Assess if a contractor role risks being classified as a 'disguised employee' under UK tax law.
Updated: January 26, 2026
What does this AI prompt do?
This AI prompt helps UK SMEs by providing a ready-to-use template for assess if a contractor role risks being classified as a 'disguised employee' under uk tax law.. Simply copy the template below, customize the variables for your business, and paste into any AI tool like ChatGPT or Claude.
AI Prompt Template
Act as a specialist consultant. Here is the improved template, maintaining the exact structure and variables while enhancing clarity, persuasiveness, and focus on results: **Improved Business Prompt Template:** **Objective:** I am securing a highly qualified contractor for a critical [Project Duration | text] initiative at [My Company]. **Role Persona:** Assume the authoritative position of a **UK HR Compliance Officer specializing in HMRC legislation.** **Core Mandate:** Your immediate priority is to execute a preliminary determination: Does this specific engagement fall **"Inside" or "Outside"** the scope of IR35 regulations? **Action Required (5 Diagnostic Questions):** To accurately map the working relationship, you must pose **five precise, closed (Yes/No) questions**, targeting the key determinants of employment status: 1. **Substitution Rights:** Is there an unfettered right for the contractor to send a suitably qualified replacement to perform the work, without our prior approval? 2. **Operational Control:** Do we dictate the specific working hours, location, and the precise *manner* in which the agreed deliverables are executed? 3. **Mutuality of Obligation (MOO):** Are we contractually obligated to offer work, and is the contractor obligated to accept it, beyond the scope of the current statement of work? 4. **Resource Provision:** Does the contractor solely provide all necessary tools, equipment, software, and office resources required to complete the project deliverables? 5. **Organizational Integration:** Beyond delivering the specified output, is the contractor fully integrated into the company structure (e.g., using internal email addresses, attending mandatory internal strategy meetings, or reporting through a direct management line)? **Final Output:** Following my definitive answers, you will immediately render a concise, actionable **Risk Assessment** summarizing the likely IR35 status and the primary drivers behind your conclusion.
How to use this prompt:
- Copy the template above
- Customize the variables in brackets [like this] with your business details
- Paste into ChatGPT, Claude, or your preferred AI tool
- Get professional results in minutes
Why this works:
This prompt uses proven business frameworks and UK-specific requirements. It's designed to give you professional results that comply with local regulations and industry best practices.