Independent Contractor Compliance: IR35 and Beyond

IR35, also known as the off-payroll working rules, is a UK tax legislation designed to spot contractors and businesses who  are avoiding paying the appropriate tax. They do this by working as ‘disguised’ employees, or  engaging workers on a self-employed basis to hide their real employment status.

IR35 rules apply if a freelancer provides services to a client through an intermediary, usually their own company e.g. a Personal Service Company (you may know this as a Limited Company) They would be classed as an employee for tax purposes if they were contracted directly.

If the rules apply and a freelancer is considered to be inside IR35, tax and National Insurance contributions have to be deducted and paid to HMRC.

If your freelancer works inside IR35, you’ll need to tax the freelancer at source, deducting income tax and national insurance, as well as employer's NICs.

If the freelancer works outside of IR35, your business must pay the freelancer the whole amount, without deducting PAYE and NIC.

Contractor misclassification occurs when a worker is incorrectly engaged as an independent contractor rather than as an employee. This creates financial, tax, and legal risks for businesses. In the UK this is governed by IR35, while in the US it often relates to 1099 vs W-2 determinations. YunoJuno helps you stay compliant across multiple jurisdictions with verified frameworks and audit-ready workflows.

IR35 is the UK’s off-payroll working legislation, designed to ensure contractors working like employees pay the correct tax. YunoJuno automates IR35 determinations as part of its global compliance system. This means you can manage IR35 in the UK alongside other international requirements, like SDC in Europe or US worker classification, all in one platform.

No. YunoJuno gives contractors and clients the freedom to engage through their preferred model, whether that’s a personal service company (PSC), sole trader, PAYE, or umbrella. Our workflows handle the tax deductions and reporting required in each case, so you stay compliant without forcing contractors into one route.

Yes. YunoJuno provides insurance and indemnity to protect businesses against legal fees, tax liabilities, and penalties related to misclassification risks. In the UK, this includes coverage for IR35 contracts, and globally it extends to equivalent contractor compliance frameworks.

Payments are guaranteed on time through YunoJuno’s integrated payments infrastructure. Where tax deductions are required, such as for inside-IR35 contracts in the UK or W-2 arrangements in the US, YunoJuno manages them automatically. This removes admin for finance teams and ensures contractors are paid correctly every time.

Yes. YunoJuno allows you to onboard and manage your own contractor network alongside talent sourced via agencies or our curated marketplace. All classification, documentation, and payments are centralised, giving you visibility and compliance oversight in one system.

No, YunoJuno is not an umbrella company. YunoJuno is a freelance management platform that brings freelancers and clients together regardless of how their business is set up.

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If a freelancer chooses to structure themselves via an Umbrella Company, then in order to find assignments with clients on YunoJuno they must be with an FCSA approved Umbrella company.