A status determination statement is a document issued by the client (ie the person engaging the worker) which states the worker’s employment status (either as an employee or as self-employed) for IR35 purposes. IR35 is a law that tackles tax avoidance by workers supplying their services to clients via an intermediary. The status determination statement also provides reasons for reaching this conclusion.
Use a status determination statement when you are determining a worker’s (also known as a 'consultant' or 'contractor') employment status for IR35 purposes. This status determination statement allows you to set out whether the worker is inside or outside of IR35 (ie whether they are classed as self-employed or as an employee for IR35 purposes).