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IR35 HELP

4 replies

Spoo · 14/02/2008 19:57

I am an engineering consultant working only 18 hours a week for only one company (at the moment). My accountant thinks I might be liable for IR35 tax but I am struggling to find out how much this might cost me. Can anyone tell me how you ROUGHLY calculate IR35 - I have been on various websites and tried to work it out but I am confused as my hours aren't standard and I keep getting different answers.

OP posts:
ChasingSquirrels · 14/02/2008 20:07

roughly - take your IR35 income, and pretend it is salary - so deduct personal allowance, and then tax at the relevant rates.
If you accountant thinks you are IR35 they should tell you how much tax it should be (and they should probably report you under the money laundering regs if you don't do something about it).
I take it you are doing this through your own personal company?

IamTooSexyForMyName · 14/02/2008 20:07

I take it you have been on the HM Revenue and Customs website?

Spoo · 14/02/2008 20:44

Thanks CHasing Squirrels - does that mean I don't pay coropration tax. I am a limited company. I have been on the HMRC website but find it really difficult to understand tax.

OP posts:
ChasingSquirrels · 14/02/2008 20:51

I don't do any anymore, I used to - but its 6 years ago so I am dredging my memory!
I think that the company has to pay the IR35 payroll tax, but can then treat this as a deduction against corporation tax (though I think you have to treat the IR35 payroll tax correctly in the accounts for this to work).

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