SG Accounting

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IR35 Taxes Calculator - Results

    Outside IR35 Inside IR35
  TOTAL TAXES: 33,884 40,672
  (Percentage of revenue) (30%) (36%)
Revenue: Total revenue 110,000 110,000
Personal Taxes: Paye 0 0
  Employees N.I. 0 0
  Dividend taxes 15,074 N/A
Company taxes: Employers N.I. 0 0
  Corporation tax 18,810 N/A
Taxes on Deemed Payment: Additional Paye N/A 23,564
  Additional Employers N.I N/A 11,338
  Additional Employees N.I. N/A 5,769
  • Being caught by IR35 results in an extra tax burden of 6,788 (20% 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: