IR35 for Procurement & Commercial Contractors: A Plain-English Checklist
IR35 trips up good projects when basics are missed. Here’s a practical checklist for procurement and commercial teams to keep things clean and moving. (Information only — not legal advice.)
The essentials
- Define the work outcomes and deliverables up-front (not “time served”).
- Ensure the contract matches reality — status depends on actual working practices.
- Keep a recorded status assessment with rationale (client-led in many cases).
- Review status if scope or day-to-day control changes mid-engagement.
Role scoping
- Write a statement of work with deliverables, milestones and acceptance criteria.
- Confirm autonomy: who directs day-to-day work?
- State whether substitution is allowed and how it would work.
Working practices
- Avoid tight supervision, direction and control where the engagement is meant to be outcome-based.
- Clarify equipment/tools ownership and access.
- Limit “employee-like” obligations; focus governance on deliverables.
Contract terms
- Ensure written terms reflect actual practices (no copy-paste contradictions).
- Capture indemnity/insurance responsibilities and IP ownership.
- State milestones, billing points and acceptance process.
Status assessment
Good hygiene
- Documented status (tool + narrative) stored with the contract.
- Stakeholders briefed to avoid promises that undermine status.
- Re-assess if scope, control or location changes.
Evidence to keep
- Signed SoW; change logs; acceptance notes for milestones.
- Proof of professional insurance (if applicable).
- Timesheets/approvals consistent with the SoW model.
Payment & admin
- Agree day rate (or milestone amounts), invoicing cadence and approver workflow.
- Confirm whether the engagement is inside or outside IR35 and route payroll accordingly.
- Keep timesheets simple; align cut-offs to payment runs.
Communication
- Share a one-pager with interview panels: what they can/can’t promise about control, hours and substitution.
- Explain status to the contractor before offer stage to avoid surprises.
Tip: Consistency beats clauses. If day-to-day behaviour contradicts the contract, behaviour wins.
Quick checklist (print-friendly)
- SoW with outcomes, milestones and acceptance criteria agreed.
- Contract mirrors reality; insurance & IP responsibilities set.
- Documented status assessment filed with rationale and evidence.
- Working practices align with status (control, substitution, equipment).
- Invoicing, approvals and payroll route confirmed (inside/outside).
- Stakeholders briefed; candidate informed before offer.
- Re-assess on scope or process change.
Final thought
IR35 is manageable when scope, contract and practice align. Keep evidence tidy, brief stakeholders, and review status when anything changes — projects move, paperwork keeps up.