IR35 Calculation

Phil Poorly

Hi all

Can anyone assist with a IR35 Calculation query.

I have a new client, director who has taken a £5200 salary in 11/12 through her limited company.

This is the first time I have had to deal with IR35 but I believe that the company is subject to IR35 rules and calculate the company has a deemed employment of £28220 inc Class 1 ers.
I've consulted my tax manual but I cannot find if the additional deemed payment is all taxed at 20% tax and the ees and ers rates of 12% and 13.8% or is it calculated taking advantage of unused PA's and ee's and er's thresholds available through the tax year.

If anyone could explain how I do the calculation I would be grateful.

Thanks.

Dean

Phil Poorly wrote: »

Hi all

Can anyone assist with a IR35 Calculation query.

I have a new client, director who has taken a £5200 salary in 11/12 through her limited company.

This is the first time I have had to deal with IR35 but I believe that the company is subject to IR35 rules and calculate the company has a deemed employment of £28220 inc Class 1 ers.
I've consulted my tax manual but I cannot find if the additional deemed payment is all taxed at 20% tax and the ees and ers rates of 12% and 13.8% or is it calculated taking advantage of unused PA's and ee's and er's thresholds available through the tax year.

If anyone could explain how I do the calculation I would be grateful.

Thanks.

Nice little spreadsheet at the foot of THIS page.

Regards

Dean

Phil Poorly

IR35 Calculation

Thanks Dean

I really appreciate your help.
I never think to use HMRC's help as I can never find what I'm looking for on their website! but the spreadsheet and their step by step guide leads me through it and I think I've got the answer now.

Grateful Regards, Phil.