Gaming Studios & IR35: A Hidden Game Over?

The UK gaming industry is thriving, but behind the creativity and innovation, there’s a growing risk that studios might not be thinking about: IR35 compliance.

The number of contractors in UK gaming has nearly tripled in just over a year, rising from 4.4% of the workforce in April 2023 to 12.7% in May 2024.

With HMRC increasing scrutiny on industries that rely heavily on contractors (we’ve seen this in TV, film, and IT), gaming could be next.

The risks? Unexpected tax liabilities, backdated National Insurance contributions, and fines—all of which could hit after a game has launched when it’s too late to fix.

Yet, many studios rely on HMRC’s CEST tool or agency determinations to handle IR35 - without realizing these don’t always meet HMRC’s Reasonable Care standards.

Studios: How are you managing IR35 compliance?

🔵 Do you rely on agencies to determine status?

🔵 Are you using CEST without manual checks?

🔵 Or is IR35 something you’ve not looked into yet?

I’d love to hear how studios are approaching this, and I’m happy to share insights on how other creative industries have been impacted.

TheMeat05 said:
The UK gaming industry is thriving, but behind the creativity and innovation, there’s a growing risk that studios might not be thinking about: IR35 compliance.

Clearly you're offering your legal compliance advice services to UK game studios with the above post, so this thread is moved to Your Announcements (where offers of paid services are permitted). Good luck with your endeavours, TheMeat.

Great question - IR35 is definitely a hidden challenge that many studios might be underestimating. The surge in contractors makes gaming a prime target for HMRC’s scrutiny, and relying solely on CEST or agency determinations is like rolling the dice on compliance.

Hmm... Studios that don’t take "Reasonable Care" could face unexpected liabilities long after launch - when fixing it is no longer an option.

How are studios tackling this?

Some are bringing in IR35 specialists to ensure airtight compliance.
Others are shifting key contractors to permanent roles where possible. A few are even restructuring contracts to minimize risk