Status Determination Statement (SDS)

A Status Determination Statement (SDS) is a formal written conclusion about a contractor's IR35 status, issued by the engaging client under the off-payroll working rules.

The SDS must explain the reasons for the determination and be passed to the contractor and the next entity in the chain (typically an agency). The client must also operate a status-disagreement process.

If you receive an SDS you disagree with, raise it through the client's formal disagreement process within reasonable time. They have 45 days to respond.

Related terms

• IR35 — The UK's off-payroll working rules — they decide whether a contractor should be taxed as a deemed employee.
• Off-payroll working (Chapter 10) — The 2017/2021 IR35 rules putting the responsibility for IR35 status on the client, not the contractor.
• Inside IR35 — An engagement that falls within IR35 — the contractor is taxed as a deemed employee.