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IR35 Classification of UK Independent Contractors for Tech Company

CXC Global2 min read
CXC GlobalApril 17, 2024
CXC Global

The collaboration between CXC and the company resulted in the successful implementation and launch of the IR35 module within a 12-week sprint.


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This technology company grappled with the task of precisely categorising over 150 Independent Contractors worldwide to comply with UK legislation, necessitating accurate classification within its vast network of directly engaged contract workers.


CXC addressed this challenge by creating a customised IR35 classification module integrated into the company’s platform, launching it within 12 weeks, and facilitating adoption through effective communication and training.


CXC’s solution offered accurate worker classification, mitigating risks for the technology company, accurately categorising over 250 UK workers, fostering a strong partnership for global expansion, and employing region-specific methods to identify potential misclassified employees.

This is a multinational technology company headquartered in the USA that is recognised globally as one of the leading players in the technology sector. This company offers a diverse array of products and services including online advertising technology, search engines, cloud computing, software, and hardware. With a workforce spanning across more than 50 countries, this company employs over 135,000 individuals. Their overarching mission revolves around organising the world's information and ensuring its accessibility and usefulness.



Company Size



California, USA

Founding Year


The Challenge

This technology company faced a significant challenge concerning its extensive network of contract workers situated around the globe, a majority of whom were directly engaged and identified by the company.

Within the scope of UK legislation, the company urgently needed to accurately classify all Independent Contractors for IR35 compliance. This entailed correctly determining the employment status of over 150 Independent Contractors.


To address this challenge, CXC assembled a dedicated team for project delivery and IT development. Their task was to construct and configure a dedicated IR35 classification module tailored for the company’s needs. This module was seamlessly integrated into CXC’s Independent Contractor Classification Platform – CXC Comply.

The collaboration between CXC and the company resulted in the successful implementation and launch of the IR35 module within a 12-week sprint. This endeavour involved close coordination with stakeholders from various departments within the company, including Finance, Legal, Technology, and Operations. In February 2021, the platform went live, with CXC’s Support and Account Team Members equipped with company-approved tools and equipment.

To ensure the successful uptake of the new system, CXC devised a comprehensive plan encompassing communication, training, and escalation procedures for all relevant stakeholders within the company. This was further bolstered by regular training sessions conducted by CXC on their platform, which facilitated a smooth transition for company personnel.


  • CXC’s solution empowered the technology company with a centralised overview of their contract workforce, ensuring accurate classification. This, in turn, mitigated potential risks such as penalties, fines and legal disputes.
  • Starting with 150 workers to classify, the project grew to, and resulted in, the accurate classification of over 250 UK workers for IR35 purposes within the company.
  • Through this collaboration, a strong and productive relationship was cultivated between CXC and the company. This rapport paved the way for the expansion of the program to an additional 18 countries globally, including in the regions of Europe, The Middle East, Africa, Asia, and Latin America.
  • The success of the program hinged on the precise classification of workers. To facilitate this, CXC worked closely with Google’s Employment Tax Team, to develop bespoke independent contractor classification frameworks for each respective country and region that were in scope of the service. The frameworks included a comprehensive list of questions which had been reviewed, weighted, and signed off by both Google’s Employment Tax Team and Legal Team. To support the classification assessments, CXC also conducted a compliance vetting process, which required the independent contractor to provide evidence of their right to work within the stated country and provide respective company documents to support their stated engagement type. With both processes running simultaneously, Google were able to effectively engage independent contractors, whilst mitigating the associated risks. These tests played a crucial role in identifying any instances of misclassified employees.

Reach out today to explore how CXC Comply can provide your organisation comprehensive oversight and control over your contractor workforce.

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About CXC

At CXC, we want to help you grow your business with flexible, contingent talent. But we also understand that managing a contingent workforce can be complicated, costly and time-consuming. Through our MSP solution, we can help you to fulfil all of your contingent hiring needs, including temp employees, independent contractors and SOW workers. And if your needs change? No problem. Our flexible solution is designed to scale up and down to match our clients’ requirements.

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