Status determination statement template
A status determination statement is the document a client gives a contractor, and the agency or company it contracts with, to say whether the engagement falls inside the off-payroll working rules (IR35). It records the worker and the role, the client's conclusion and the reasons, and whether the HMRC employment status tool was used. Medium and large clients must give one for each engagement.
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What changes each time
21 values. Everything else is your wording, kept exactly.
The client
- Client's full legal name
- Client's address
- Issued by, name and job title
- Email address
The worker
- Worker's full name
- Intermediary's legal name and number
- Agency, or the party contracted with directly
The engagement
- Date of the statement
- Reference
- Role title
- Description of the work
- Start date
- End date, or ongoing
- Location, remote or hybrid
The decision
- Conclusion
- Date of the HMRC tool check, and result and reference
- Findings for each factor
- Inside, outside or neutral for each factor
- Summary sentence
Review
- Number of months between reviews
- Who to contact about a disagreement
The rules it usually needs
Written in plain English when the template is set up.
- One of several wordings
“The statement is issued to an agency, or directly to the worker's intermediary.”
The document carries the wording for whichever applies, and the other wording is left out.
- One of several wordings
“The conclusion: inside the off-payroll rules, or outside them.”
The document carries the wording for whichever applies, and the other wording is left out.
- Only when…
“Include the sentence on the HMRC tool only when it was used.”
When this applies, the sentence on the HMRC tool is included; when it does not, it is left out and the rest of the document is unchanged.
- Only when…
“Include the sentence saying the tool was not relied on only when it was not.”
When this applies, the sentence saying the tool was not relied on is included; when it does not, it is left out and the rest of the document is unchanged.
- Once for each item
“One row for each further status factor, with the findings and whether it points inside, outside or neutral.”
The table has one row for each, so it grows or shrinks to match.
- Only when…
“Include the periodic review wording only when the statement is reviewed periodically.”
When this applies, the periodic review wording is included; when it does not, it is left out and the rest of the document is unchanged.
- Only when…
“Include the sentence on withdrawal if the client stops qualifying as medium or large only when the client is a private-sector client.”
When this applies, the sentence on withdrawal if the client stops qualifying as medium or large is included; when it does not, it is left out and the rest of the document is unchanged.
Questions people ask
What is a status determination statement?
It is a document that a client gives to a contractor, and the party it contracts with, setting out whether it has decided the engagement is inside or outside the off-payroll working rules, and why.
Who has to provide one?
In the private sector, medium and large clients, or the agency in some situations. Small clients do not, because the contractor's own company decides its tax status.
What must it contain?
The client's conclusion and the reasons for it. HMRC publishes guidance on what a statement must contain, and the reasons should refer to factors such as control, substitution and financial risk.
What if the contractor disagrees?
They can ask the client to review the decision, and the client has to reply within 45 days, saying whether it agrees and why. The statement gives a contact for it.
Is the HMRC employment status tool compulsory?
No. HMRC's Check Employment Status for Tax tool is one way to reach a decision, but the client can use another approach if it takes reasonable care, which is why the statement records whether it was used.
Use this template
It opens in DocuWeave as a template you can check, change and publish. Nothing is used until you do.