IR35 has greatly complicated contractual compliance in what had previously been a simple choice for many. Traditionally, it has been possible for a contractor working in the United Kingdom to supply services either as a Direct Employee of a particular agency / client via their P.A.Y.E. system, or as the Director / Shareholder of their own Limited Company. IR35 has complicated this straightforward choice by the necessity of ensuring that services supplied via a limited company pass a variety of tests including:

· Not owning more than 5 per cent of the Company
· The Company has more than 1 source of income for greater than three months.

· In the case of non-availability of the Contractor, a substitute who can fulfil the role.