IR35

Deemed Payments

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I'm looking for some worked examples of the deemed payment method for IR35 and would be grateful if someone can point us in the right direction

I'm fine with the actual deemed payment calculations themselves, I'm just trying to get my head around how this ties up to the company accounts and corp tax / PAYE

we have a few clients who'll be pulled into IR35 from April, so just looking to get ahead early

thanks

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Euan's picture
By Euan MacLennan
19th Oct 2016 17:42

The best advice is to do your IR35 calculations and then actually pay (at least) the required amount to the worker, so that you don't end up with a deemed payment. Assuming that the worker is a director, you don't need to pay cash out of the company - you can just credit it to his DLA to be drawn later.

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