What are the small company thresholds for IR35 in 2026/27?

From April 2025, a company qualifies as small if it meets at least two of: annual turnover ≤ £15 million, balance sheet total ≤ £7.5 million, average number of employees ≤ 50. Previously the thresholds were £10.2M and £5.1M.

If my client is small, who determines my IR35 status?

If your client is a small private sector company, the responsibility for determining your IR35 status falls back to your own PSC (limited company), as it did before the 2021 off-payroll reforms.

When do the new small company thresholds actually take effect for IR35 purposes?

Company size under IR35 is assessed by reference to the prior financial year. For most companies, the practical effect of the April 2025 threshold increases won't apply until April 2027, depending on their accounting period.

IR35 Small Company Checker 2026/27 | Who Determines Your Status?

Does your client qualify as a "small company" — and who determines your IR35 status? This tool uses the updated April 2025/2026 thresholds to give you a clear answer in 5 questions.

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. 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 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 Companies House. 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 — only those on contracts of employment (PAYE). Threshold is 50 employees, unchanged.

I don't know / not available

Your client must respond to a formal size request within 45 days

Question 5 of 5

Is your client part of a larger group of companies?

Critical: if your client is a subsidiary, the entire group's figures are assessed. A small subsidiary of a large parent does not qualify.

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

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

Result

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Threshold Assessment

Criterion	Threshold	Your client	Result

Important Timing Rules

What To Do Next

Get your IR35 status reviewed

Qdos reviews thousands of contractor contracts per year. A status review from £99 — and insurance from £99/year if you're outside IR35.

Review My Status →

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. Company size under OPW rules is assessed by reference to the prior financial year. The 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. Not legal or tax advice.

SMALL COMPANY CHECKER.

Threshold Assessment

Important Timing Rules

What To Do Next

Get your IR35 status reviewed