Updated April 2026
New Thresholds Active

IR35 Small Company
Checker

Find out whether your client qualifies as a "small company" — and whether you or they are responsible for determining your IR35 status. Uses the updated April 2025/2026 thresholds.

1
Company type
2
Turnover
3
Balance sheet
4
Employees
5
Group structure
Question 1 of 5
What type of company is your client?
The small company exemption only applies to private sector companies. Public sector bodies are always subject to IR35 off-payroll rules, regardless of size.
Private sector company
Ltd, LLP, partnership, or private business — not government or publicly funded
Public sector / government body
NHS, councils, government agencies, universities, or other public bodies
Overseas company with no UK presence
A foreign company that has no UK connection, subsidiary or establishment
Question 2 of 5
What is your client's annual turnover?
Use the most recent filed accounts. If you don't know, use your best estimate. The threshold from April 2025 is £15 million (previously £10.2 million).
£
per year
I don't know / not available
We'll factor this in — you can still request confirmation from your client
Question 3 of 5
What is your client's balance sheet total?
Total assets before any deductions (gross assets). Found on the balance sheet in their Companies House filing. The threshold from April 2025 is £7.5 million (previously £5.1 million).
£
gross assets
I don't know / not available
Available on Companies House for most UK companies
Question 4 of 5
How many employees does your client have?
Average headcount over the year. Contractors are not counted as employees for this test — only those on contracts of employment (PAYE). The threshold is 50 employees, unchanged from previous years.
I don't know / not available
Your client must respond to a formal size confirmation request within 45 days
Question 5 of 5
Is your client part of a larger group of companies?
This is critical. If your client is a subsidiary, the entire group's turnover, balance sheet, and headcount is assessed — not just the subsidiary. A small subsidiary of a large parent does not qualify for the exemption.
Standalone company — no group structure
Not owned by or connected to any parent company
Part of a group — but the parent also appears small
The group as a whole seems likely to meet the small company criteria
Subsidiary of a medium or large parent company
e.g. a regional office or subsidiary of a larger organisation
Not sure about their group structure
You'd need to verify this before relying on the exemption
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Result
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Threshold Assessment

Criterion Threshold Your client Result

Important: Timing Rules

What To Do Next

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Disclaimer: This tool is for general guidance only, based on the Companies Act 2006 small company criteria as updated from April 2025, and HMRC's IR35 off-payroll working rules. Results are indicative — the precise determination depends on your client's specific financial position, group structure, and accounting periods. Company size under OPW rules is assessed by reference to the prior financial year. Practical effect of 2025 threshold changes may not apply until April 2027 for some companies. Always verify with a qualified IR35 specialist before relying on any exemption. This does not constitute legal or tax advice.