If a public-sector architecture client engages a contractor through an intermediary, IR35 and off-payroll working should be dealt with before the brief goes live. It is not just payroll admin. It affects the role, the rate, the contract chain and whether the opportunity is attractive to contractors.
This is not tax or legal advice. Use GOV.UK off-payroll working guidance for clients, the Check Employment Status for Tax tool and specialist advice where needed.
Watch: public-sector architecture context
This Architecture Social conversation is not a tax explainer, but it gives useful context on how public-sector architecture work is won, delivered and managed.
What the client has to decide
Where the off-payroll rules apply, the client needs to decide whether the worker would be treated as employed for tax purposes if they were engaged directly. In public-sector engagements, that decision cannot be left as an afterthought.
- Check whether the organisation is a public authority, using official guidance and the Freedom of Information Act public authority list where relevant.
- Identify whether the worker is providing services through an intermediary, such as a personal service company.
- Decide whether the assignment is inside or outside the off-payroll rules.
- Issue a clear Status Determination Statement with reasons.
- Pass the determination to the worker and the agency or contracting party in the chain.
Reasonable care matters
GOV.UK is clear that clients must take reasonable care when making a status determination. A blanket decision based only on job title, urgency or convenience is not enough.
In architecture, two people can both be called architectural technicians or project architects, but the working reality can be completely different. One may be delivering a defined package with autonomy. Another may be filling a staff gap under close supervision.
Questions to settle before briefing the role
- Is the contractor delivering an agreed output or filling a staff-cover role?
- Who controls how, when and where the work is done?
- Is substitution genuinely possible?
- Will the contractor use client systems, staff processes and line management?
- Is the person integrated into the team like an employee?
- Who carries financial risk for defects, delays or rework?
- Who is the fee payer and how will payroll deductions be handled if the role is inside IR35?
Listen: public-sector architecture work
The audio version adds wider context on public-sector projects, client expectations and the environment contractors may be entering.
Where architecture clients get caught out
Architecture briefs often start with a delivery problem: a healthcare project needs technical support, a public-sector housing programme needs drawing resource, or a regeneration team needs someone quickly. IR35 trouble starts when the brief is written like a permanent job but sold as a contractor assignment.
- Vague responsibilities such as support the team or assist on projects.
- Fixed hours, close supervision and employee-style management.
- No clear deliverables or project boundary.
- Late conversations about rate, payroll route and inside or outside IR35 status.
- Assuming the agency will solve a decision that belongs to the client.
Fee payer and cost planning
If an assignment is inside IR35, the fee payer may need to operate PAYE and account for National Insurance through the chain. Employers’ National Insurance and apprenticeship levy costs can affect the true cost of supply, so the rate conversation should happen early.
Contractors may respond differently depending on the route. Some will accept an inside-IR35 assignment if the project, rate and duration make sense. Others will walk away if the working practices, risk and pay route are unclear.
Use CEST, but do not outsource judgement
The HMRC CEST tool can help structure the assessment, but it is not a substitute for understanding the working reality. The person completing it needs enough detail from the hiring manager, project lead and contract chain to answer properly.
Common mistakes
- Treating IR35 as a finance-only issue.
- Deciding status after the contractor has already accepted.
- Using one determination for very different assignments.
- Writing a contractor brief that reads exactly like a permanent job description.
- Failing to document the reasons for the decision.
Architecture Social view
Stephen’s recruiter view is that the best client briefs are commercially honest. If the role is inside IR35, say so early. If the role is genuinely project-based, define the output properly. Contractors will make better decisions when the working reality is clear.
Next step
Before issuing a public-sector contractor brief, write down the output, control, supervision, substitution, payment route and status determination process. For related reading, see the off-payroll working guide for architecture contractors, the private-sector employer IR35 guide and the umbrella company guide.
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