IR35 for Creatives: What's the Big Deal?

At its heart, IR35 is about making sure people who work like employees pay tax like employees, even if they use their own limited company. For creatives, the lines can sometimes feel a bit blurry. Are you truly an independent business offering your unique flair, or are you essentially filling a staff role for your client? That's what HMRC wants to know.

Key things they'll look at include:

• Control Over Your Craft: This is a big one for creatives. Does your client give you a brief and let you run with your creative expertise (good for Outside IR35)? Or are they dictating every tiny detail of your design, word choice, or marketing tactic, almost like a line manager would (leans Inside IR35)? For example, if you're a graphic designer given brand guidelines and a project goal, but *you* decide the layout, typography, and imagery, that shows control. If they're micromanaging pixel placements, it's less clear.
• Right of Substitution – Can You Send a Mate?: Could you, in theory, send another suitably skilled creative to do the work if you were swamped or fancied a holiday? For a writer, maybe you could subcontract an article (if your contract allows). For a photographer hired for their specific style, this can be trickier. A genuine, unfettered right to substitute (even if you never use it) is a strong pointer towards being Outside IR35. If the client *only* wants you, personally, that looks more like employment.
• Project vs. Retainer Puzzles: Are you hired for a specific project – say, designing a logo, writing a set of web pages, or running a three-month marketing campaign? This is great for an Outside IR35 case. If you're on an ongoing retainer, effectively "on call" for all their creative needs indefinitely, it can start to look more like an employment relationship, especially if there's an expectation of continuous work (Mutuality of Obligation).
• Who Owns the Sparkle (Intellectual Property)? Typically, if you're a genuine business, your contract might state that IP transfers to the client upon full payment, or you might retain some rights. If the client automatically owns everything as if you were an employee creating it "in-house", that could be a factor, though IP clauses alone don't decide IR35 status.
• Your Creative Toolkit: Are you using your own Adobe Creative Suite subscription, your trusty MacBook, your preferred writing software, or your own camera gear? Providing your own essential tools is a good sign you're in business for yourself. If the client provides everything, it can lean more towards an employment setup.

It's all about the overall picture. Our main Understanding IR35 guide covers these general principles in more detail.

Nailing That Outside IR35 Vibe: Tips for Creatives

Want to make sure your freelance creative gigs look like genuine business-to-business arrangements? Here are some tips:

• Crystal Clear Statement of Work (SoW): For each project, have a solid SoW. This should outline exactly what you'll deliver (e.g., "one logo design with three concepts and two rounds of revisions," "five 1000-word blog posts on X topic," "social media strategy document and content calendar for Y campaign"). Fixed project fees are often better than just day rates.
• Show You're a Business: Have your own website or portfolio? Business cards? Professional indemnity insurance? Do you market your services to multiple clients? These all help paint the picture of an independent creative business.
• Manage Your Time: While you'll have deadlines, try to manage your own working hours and location as much as the project allows. Avoid being tied to the client's 9-to-5 office routine if the work doesn't strictly require it.
• Keep Your Contracts Tidy: Make sure your contracts reflect the reality of how you work and include clauses that support an Outside IR35 status (like a clear substitution clause, if feasible for your service).

Common IR35 Tripwires for Creative Freelancers

Watch out for these common scenarios that can make an engagement look more like Inside IR35:

• Becoming "Part of the Furniture": Working for one client for a very long time, using their email, being on their internal charts, or attending all staff meetings can make you look like an integrated employee.
• Vague, Open-Ended Retainers: If your contract just says "provide design services as required" with no clear end or deliverables, it's less robust than a project-specific SoW.
• Restrictive Clauses: Contracts that heavily restrict your ability to work for other clients or have very tight control clauses can be problematic.

Don't forget to check out our guide on 10 Red Flags for IR35 Compliance.

Wrapping It Up: IR35 for the Creative Soul

Being a creative freelancer is awesome, and IR35 doesn't have to spoil the fun. It's just about understanding the rules and making sure your contracts and the way you work reflect your status as an independent business. Be clear about what you're delivering, maintain your business identity, and if in doubt, get some professional advice.

Curious about how different IR35 statuses might affect your earnings? Pop your figures into our IR35 Calculator for an estimate!