IR35: Deemed payments advice issued
The Inland Revenue has issued guidance on how to calculate deemed payments that may be required under the controversial IR35 rules.
Available on the Revenue’s website, the statement sets out how to decide whether the rules apply to you and what to do if they do.
The Revenue also provides an example and a blank step-by-step guide, which can be printed out to help calculate the payment.
Anti-IR35 body the Professional Contractors Group this week meets representatives of the Inland Revenue at the High Court in London, in a bid to have the controversial legislation overturned. IR35 is intended to hit contractors operating through service companies where they are the sole employee. But the PCG claims the Revenue’s crackdown is unfair because it taxes one-person businesses more harshly than large organisations.
Links
>Leaflet: IR2003 – Supplying Services: How to calculate the deemed payment.
How to calculate the deemed payment
How to account for the deemed payment
Calculation of the Deemed Payment Example Using the Step by Step Guide
Calculation Of The Deemed Payment – Step By Step Guide
Leaflet IR175 ‘Supplying services through a limited company or partnership’
This note shows where IR35 rules apply, and what to do if they do apply.