£10 - £15 per hour worst hit by IR591

What is IR591?

The measure, which was introduced in the 2004 Budget, means that if your company cannot take advantage of the zero corporation tax rate unless it retains profits.

It does not apply contractor currently caught by IR35 or those whose profits exceed £50k per annum.

£10-£15 per hour Worst Hit

Those contractors earning between £10 and £15 per hour are most hit by the new measures, with £12 being the worst hit.

Those on £10-£15 per hour will suffer a reduction of up to £155 (11%) in their net monthly income.

Affect on Other Incomes

The table below gives you an approximate indication of how it will affect your monthly net income.