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IR35 in the UK telecom market refers to the tax legislation that aims to identify individuals who are working as disguised employees, thereby avoiding tax and National Insurance contributions. The legislation is designed to ensure that individuals working like employees, but through their own limited companies, pay similar taxes as employees.

For telecom companies in the UK, understanding and complying with IR35 is crucial to avoid potential fines and legal issues. It is essential for businesses to correctly classify their workers as either employees or contractors, taking into account factors such as control, substitution, and mutuality of obligation.

Failing to comply with IR35 can result in financial penalties, backdated taxes, and reputational damage. Therefore, telecom companies operating in the UK market must stay informed about the latest updates and guidelines related to IR35 to mitigate risks and ensure compliance with the law.