Why I Said No to an Inside IR35 Contract (And Why That Matters for Every Consultant)

Screenshot of a job offer email for a Project Manager at Heathrow, highlighting an Inside IR35, £450-£500 per day contract.

If you’re a consultant or project lead in the UK, you’ve likely received one of these emails. The subject line looks promising. The rate seems fair. The location is convenient.

Recently, I received an offer that ticked all these boxes: £500/day, Heathrow, just 2 days a week.

But here’s what they didn’t say in the subject line:

  • Inside IR35: You’ll be taxed like an employee with none of the benefits.
  • No Client Transparency: My contract would be with a middleman, not the end client.
  • High-Risk Scope, Low Authority: I’d be accountable for critical airport systems (baggage, CCTV, access control) on a “multiyear project” without having any actual control over the outcome.

I said no.

And while being approached is always flattering, I’ve learned that the real win isn’t the offer itself. The real power is having the clarity to say no to roles that break your delivery, your brand, and your authority.

The Hidden Cost of an “Inside IR35” Trap

IR35 is a UK tax regulation designed to distinguish between genuine contractors and “disguised employees.” A contract “inside IR35” means that for tax purposes, you are considered an employee.

The problem? You get the worst of both worlds.

The Worst of Both Worlds

As James said, a fellow professional, puts it perfectly:

“It’s all the taxes of a staff employee (often more) without the rights, benefits, perks or protections of staff employment in return.”

For consultants, this isn’t just a tax issue ∆ it’s an existential one. You lose the very things that make you a consultant in the first place.

Here’s a breakdown of what that really means:

  • You can’t be a business. You lose the ability to offset business expenses (training, tools, travel) against tax. You can’t grow your business or charge VAT.
  • You lose control. You can’t decide your working hours or location. You have to rely on an unwanted middleman for your tax affairs.
  • Your protections vanish. Your Professional Indemnity and Public Liability insurances will no longer cover you in an “inside IR35” role.
  • You absorb all the risk. You’re held accountable for results, but you lack the authority to make key decisions.

From a project management perspective, these setups are a recipe for failure. You can’t deliver strategic value if the structure is fundamentally flawed from the start.

The Irony of the “Blanket Ban”

One of the unintended consequences of the IR35 regulations is that many clients have taken the lazy way out. Instead of conducting proper assessments, they’ve simply imposed a blanket ban on hiring any limited company contractors.

The Lazy Mindset That Harms Professionals

And here’s the irony I can’t ignore: the very clients who are complaining today that their project delivery “isn’t what it used to be” are the same ones pushing away experienced consultants with these blanket bans.

They are sacrificing quality and strategic expertise for administrative convenience.

The Consultant’s Framework for Saying No

At International Exit Strategy, we help service businesses protect their delivery, not patch broken setups. This starts with a clear framework for when to walk away.

Own the Outcome, or Don’t Take the Role

If you’re held responsible for results, you must have the power to make decisions. Otherwise, you’re not managing; you’re absorbing risk.

Your Contract Is Your Delivery System

A contract isn’t just a legal document—it’s an operational tool. If it removes your autonomy, your delivery will suffer. Period.

A contract isn’t just a legal document—it’s an operational tool. If it removes your autonomy, your delivery will suffer. Period.

Say No So You Can Say Yes

Every misaligned “yes” burns time, energy, and credibility. Every strategic “no” creates space for the right roles that align with your value and expertise.

Conclusion: Your Power Is in the Pause

This offer was a great example of a bad role dressed up as an amazing opportunity. The appeal to the ego is strong, but the power to say no is what defines a successful, sustainable career.

So, the next time a tempting offer lands in your inbox, take a moment to pause.

Audit the structure. Question the transparency. And if it’s a trap, have the clarity to walk away. You’re not rejecting the project; you’re protecting your delivery, your brand, and your authority.

Want to work with an agency that protects your clarity and delivery boundaries?

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If you want to know more about the specifics of the IR35 rules, the official government website is the best place to start.