What is IR35 and does it affect Network Administrator contractors?
IR35 is HMRC's off-payroll working legislation. If your engagement is deemed "inside IR35," you are taxed as an employee (Income Tax and National Insurance on your full contract rate), even if you operate through a limited company. Outside IR35 you can pay yourself a mix of salary and dividends through your limited company, retaining more of your income. Network Administrator contractors typically work on project-based engagements, which may qualify as outside IR35 if the contract and working practices confirm genuine business-to-business arrangements.
