England and WalesLaw of England and Wales

IR35 Services Agreement Template for England and Wales

IR35 (the off-payroll working rules) applies across England and Wales under Chapter 8 and Chapter 10 ITEPA 2003. Since April 2021, medium and large private-sector engagers must issue a Status Determination Statement (SDS) before engagement begins. A professionally drafted services agreement is the contractor's primary evidence of independence.

England and Wales-specific legal consideration

Chapter 10 ITEPA 2003 places the IR35 determination on the engager (not the PSC) for medium and large companies. The engager must issue a Status Determination Statement (SDS) and use reasonable care — failure to do so transfers the tax liability back to the engager.

What your AI-generated IR35 Agreement includes

  • Outside IR35 intent declared — supports Chapter 10 ITEPA 2003 determination
  • Status Determination Statement (SDS) clause — engager obligation to issue in writing
  • Unconditional right of substitution — genuine right without engager veto
  • No mutuality of obligation — each statement of work is a discrete commercial engagement
  • Control test — deliverables-based only, engager cannot direct working methods or hours
  • Financial risk clause — PSC bears cost of rectifying defective work at own expense
  • Own equipment and tools — PSC uses own software, hardware, and professional resources
  • Liability cap at 2× fees paid, plus professional indemnity insurance requirement

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This page provides general information about ir35 agreement contracts under Law of England and Wales and is not legal advice. Contracto generates AI-assisted contract drafts — always review with a qualified solicitor or lawyer for high-value or complex agreements. Full legal disclaimer →