Your 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.
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