IR35 and Off-Payroll Explained
|

Our small logo in orange and blue

|

The UK's leading contractor site. 200,000 average monthly visitors.

Support ContractorCalculator

Contribute Membership

IR35 Taxes Calculator - Results

    Outside IR35 Inside IR35
  TOTAL TAXES: 7,097 10,368
  (Percentage of revenue) (17%) (25%)
Revenue: Total revenue 41,250 41,250
Personal Taxes: Paye 0 0
  Employees N.I. 0 0
  Dividend taxes 1,350 N/A
Company taxes: Employers N.I. 0 0
  Corporation tax 5,747 N/A
Taxes on Deemed Payment: Additional Paye N/A 4,053
  Additional Employers N.I N/A 3,418
  Additional Employees N.I. N/A 2,896
  • Being caught by IR35 results in an extra tax burden of £ 3,270 (46% 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.

Solutions for Contractors:

Closing your company?

Do you have retained cash? Use an MVL to pay only 10% tax. Find out how.

MPU