The two terms indicate your IR35 status. Outside IR35 means that you are considered self- employed in the eyes of the law. You will need to deduct your own tax either by yourself or through your limited company correctly, and on time.
This is usually completed through dividends taken from your limited company and your salary. In some cases, individuals are subject to an enquiry by HMRC to check compliance with the legislation.
When it comes to being inside IR35 you are considered an employee by HMRC for tax purposes which means you are subject to PAYE.
Individuals classed as inside IR35 must ensure they are paying tax appropriately either through an accountant, fee-payer or umbrella company. We recommend reassessment of this if you change your type of work or if you begin a new contract with an employer.
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