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IR35 Deemed Payment

PsychePsyche Well-KnownRegistered Posts: 187
Hello there,
I have a client who apparently is running afoul of the IR35 rules.
I have consulted the HMRC website about how to calculate the deemed payment but the bit that seems to be missing is what taxes are payable on the deemed payment? Does he owe PAYE, Employee's NI and Employer's NI? Also does he pay the tax or does the company? He is an IT consultant operating as a one-man limited company, and so far has taken a nominal salary and the rest in dividends.
Thanks for any help!

~Psyche

Comments

  • BluewednesdayBluewednesday Font Of All Knowledge Registered Posts: 1,624
    the deemed payment is taxed and ni'd and the employers ni that you used to get the deemed payment is also payable. This is taxed on him, not the company.

    Who has decided that he's caught by IR35?
  • PsychePsyche Well-Known Registered Posts: 187
    His agent said that IR35 applies to him, but I am going to have him send me his contracts and discuss with HMRC to make sure.
  • BluewednesdayBluewednesday Font Of All Knowledge Registered Posts: 1,624
    We have had one recently who was touch and go and we had hte contract reviewed by either Abbeytax or accountax who are recommended by PCG (Professional contractors group). it is worth joining them also as there are a few benefits of membership.

    It's worth having a look at their site, the one we were looking at would have had a paye bill of £50k should they have been caught by it!!
  • groundygroundy Trusted Regular Registered Posts: 495
    Agree with bluewednesday, try Accountax, we go on their courses once a year and also use their contract review system. The last thing you should be doing is consulting on his contract with HMRC.
  • deanshepherddeanshepherd Font Of All Knowledge Registered Posts: 1,809
    Shameless plug: We also do IR35 contract reviews. Feel free to contact me if you are interested.
  • taskeytaskey Font Of All Knowledge Registered Posts: 1,800
    so thats what you look like Dean

    Tracy
  • deanshepherddeanshepherd Font Of All Knowledge Registered Posts: 1,809
    No, that's a paid actor used for the website. I'm much better looking!
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