IR35 Taxes Calculator - Results

    Outside IR35 Inside IR35
  TOTAL TAXES: 6,831 11,678
  (Percentage of revenue) (16%) (28%)
Revenue: Total revenue 41,250 41,250
Personal Taxes: Paye 0 0
  Employees N.I. 30 30
  Dividend taxes 0 N/A
Company taxes: Employers N.I. 35 35
  Corporation tax 6,764 N/A
Taxes on Deemed Payment: Additional Paye N/A 5,250
  Additional Employers N.I N/A 3,421
  Additional Employees N.I. N/A 2,940
  • Being caught by IR35 results in an extra tax burden of £ 4,847 (70% increase)
  • The increase in taxes is mainly due to the additional employers and employees N.I., together with income tax being payable at full rate as opposed to a combination of corporation tax and dividend tax which is lower. You also lose the advantage of being able to split your dividends.
  

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