What does outside IR35 mean for contractors?

"Outside IR35" refers to a situation where a contractor is not considered an employee for tax purposes under the UK's IR35 legislation. In other words, the contractor is operating their business and providing services, through a personal service company (PSC). This means that the contractor is responsible for paying their own taxes, National Insurance contributions, and other related expenses.

Being "Outside IR35" provides more freedom and flexibility to contractors and allows them to operate independently without being subject to employment taxes. However, it's important to note that the determination of IR35 status is a complex matter and contractors should ensure that they are following the rules correctly to avoid any potential legal or financial implications.