Your results
| Outside IR35 | Inside IR35 | ||
|---|---|---|---|
| TOTAL TAXES: | £7,781 | £9,541 | |
| (Percentage of revenue) | (18%) | (23%) | |
| Revenue: | Total revenue | £41,250 | £41,250 |
| Personal Taxes: | Paye | £0 | £0 |
| Employees N.I. | £0 | £0 | |
| Dividend taxes | £1,668 | N/A | |
| Company taxes: | Employers N.I. | £451 | £451 |
| Corporation tax | £5,661 | N/A | |
| Taxes on Deemed Payment: | Additional Paye | N/A | £3,909 |
| Additional Employers N.I | N/A | £3,617 | |
| Additional Employees N.I. | N/A | £1,562 |
- Being caught by IR35 results in an extra tax burden of £1,760 (22% 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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