IR35 Comparison
 

Under IR35 you may have considerable extra tax and NICs to pay for the following Reasons:

  1. you have to pay tax and NIC on 95% of the company's revenues rather than on the money which you are actually paid;

  2. you cannot pay part of the profits of the company to the shareholders as dividends; this method is not subject to NIC and can be used to mop up the lower rate tax bands of the shareholders.

screen shot (click to enlarge)

 

Independence has a facility which allows you to compare the amounts payable under the two regimes.

This form allows you to compare the tax and NICs due under the different regimes.

Simply enter the relevant figures and click on the 'calculate' buttons.

 

 ©2003 Designs on Data Ltd     

 Revised: Oktober 23, 2003 .