Your results
| Outside IR35 | Inside IR35 | ||
|---|---|---|---|
| TOTAL TAXES: | £10,778 | £16,148 | |
| (Percentage of revenue) | (18%) | (27%) | |
| Revenue: | Total revenue | £57,750 | £57,750 |
| Personal Taxes: | Paye | £0 | £0 |
| Employees N.I. | £139 | £139 | |
| Dividend taxes | £1,312 | N/A | |
| Company taxes: | Employers N.I. | £162 | £162 |
| Corporation tax | £9,164 | N/A | |
| Taxes on Deemed Payment: | Additional Paye | N/A | £7,683 |
| Additional Employers N.I | N/A | £5,185 | |
| Additional Employees N.I. | N/A | £2,977 |
- Being caught by IR35 results in an extra tax burden of £5,369 (49% 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:
Check your IR35 Status for FREE
Use IR35 Shield to check your status NOW!
