IR35 Calculation

Phil Poorly
Phil Poorly Registered Posts: 6 New contributor 🐸
edited June 18 in AAT member discussion
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.

Comments

  • Dean
    Dean Registered Posts: 643 Epic contributor 🐘
    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
    Phil Poorly Registered Posts: 6 New contributor 🐸
    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.

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