IR35 & Control in 2026/27: Explainer for Contractors

IR35 and Control: what's key for contractors?

Control will remain one of the most important tests when deciding IR35 status in 2026/27.

Recent IR35 cases have reaffirmed that it is the "right" of control that matters, even where that right is not exercised in practice.

There has also been increased emphasis on whether control exists through a wider "framework", which contractors may not always recognise or be aware of.

How does HMRC test IR35 status using Control?

HMRC and the courts will look at the engagement as a whole to assess whether there is a sufficient degree of control that points towards employment.

And in 2026-27 and beyond, this concerns 'what' work is done, 'how' it is done, as well as 'where' and 'when' it is done.

Here, exclusively for ContractorUK, I will outline four main ways control under IR35 will be tested for, and explain how contractors can assess it in their own engagements, in the 2026/27 tax year, commencing April 6th 2026, writes Charlie Hemsworth, a director at status advisory Bauer & Cottrell.

1. Control over 'what' work is done

The 'what' is an important aspect of control.

The ideal position is that you are engaged to deliver a clearly defined outcome or service, and the client cannot unilaterally change your scope or instruct you to take on different tasks.

Helpful indicators of a lack of control over 'what' include:

If the client can move you between tasks based on priority, expand your role, or direct you to "help out where needed," they are controlling what you are doing, and this will be very unhelpful to achieving an outside IR35 position.

2. Control over 'how' the work is done

The 'how' test is often the most important aspect of control under IR35, yet it is commonly misunderstood.

Here, we are talking specifically about who decides (or has the right to decide) the day-to-day working methods to achieve the outcome. In other words, whether you are applying your own professional judgement and expertise, or whether you are subject to a right of direction around how your tasks are carried out.

Three questions to ask yourself about the 'how' of Control

Ask yourself three questions to determine if your client exercises (or may have a right of) control over 'how':

What if the end-client isn't capable of doing my work?

If the client does not have the capability to do your work, there is often little scope for them to control 'how' you do it. Although be aware, in these situations, a lack of control over 'how' may carry less weight in the overall status decision.

Is there a "framework of control" around 'how'?

Even where there is no day-to-day technical direction, you should also consider whether a "framework of control" exists, and it may not be obvious.

In this context, whether there is a "right" to exercise control is critical.

Even highly skilled employees are often left to get on with their work with little supervision. However, their employer still retains the right to step in, direct them, assess their work, and impose consequences if necessary.

What might a framework of control look like for IT contractors?

In a professional IT contracting context, a "framework of control" might include:

• The requirement to follow internal policies, procedures, non-industry standards or codes of conduct (general legal or regulatory requirements applying to everyone are less likely to be seen as control).
• Reporting to a line manager, or having work assessed against performance rather than purely against contractual deliverables.
• Sanctions available to the client if you do not comply, including terminating the contract.

What did PGMOL say about control?

This overarching framework of control was a key finding in the 'PGMOL' case, where football referees who were largely independent during matches had control exercised over them through conduct requirements and penalisation after matches.

Such a wider framework was enough to satisfy the control test, even though direct supervision during the match was not possible.

3. Control over 'when' the work is done

Having complete freedom over the hours and days you work to deliver your services is the ideal position.

However, this freedom is not always realistic in IT and professional contracting, where coordination with client teams is often necessary. The context and nature of the work will determine how much weight this factor carries in each case.

What 'when' control factors point to outside IR35?

Factors that show a lack of control over 'when' include availability that is framed around project needs rather than specific working patterns, the absence of fixed hours in the contract, and genuine flexibility over the times worked (subject to meeting agreed milestones and deadlines).

If the client sets specific hours, requires you to be available at any time they need, or has first call on your services, this amounts to control over when the work is done and won't be helpful to achieving an outside IR35 position.

4. Control over 'where' the work is done

Control over location is another relevant factor, though again it must be viewed in context.

Helpful indicators showing a lack of control over 'where' include the ability to work remotely or from your own premises with no obligation to attend the client's premises unless genuinely necessary, or location requirements driven by the nature of the work rather than client preference.

A requirement to work at client locations, even if the work could be done elsewhere, or remote working that is subject to agreement, as it would be for employees, would certainly amount to control over 'where.'

IR35 & Control: In Summary

In summary, a genuine and collective lack of control over what, how, when and where you work is a very strong indicator of an outside IR35 position.

At the very least, you should be able to evidence a clear absence of client control over what work is carried out and how it is performed.

Remember, in 2026/27, a contractual "right" of control is enough on its own. It does not need to be exercised, and you should establish whether there is a broader framework of control that exists in the contract.

Careful drafting of control provisions in the written contract is key, and all parties must ensure the reality of the working arrangements genuinely reflects what that contract states.

Final key takeaway about IR35 & Control in 2026/27

And as always with IR35, a single employment status test ('Control' in this case) is very rarely decisive in isolation.

Therefore, it is necessary to consider control alongside the other key employment status tests to form an overall picture. To help contractors form this overall picture, ContractorUK will be publishing our status advisory's further guidance for 2026/27 on the other key IR35 status factors and tests of Substitution and Mutuality of Obligation.