Individuals, companies and IR35

My contract is within IR35 - what should I do next?

You will have to calculate any additional tax and National Insurance contributions (NICs) on all payments falling within IR35 for the tax year. This is known as the deemed payment. You can read more about how to calculate a deemed payment at the HM Revenue & Customs website.

You are given a timetable to follow:

5 April - calculate your deemed payment. You can download an IR35 deemed payment calculator from the HM Revenue & Customs website (XLT).

19 April - send any tax and NICs due on the deemed payment, or a payment on account of any tax and NICs due.

19 May - send your end of year PAYE returns (forms P35 and P14).

Include any deemed payment, and the tax and NICs due on it. If you have not finally calculated your deemed payment, include a covering letter explaining that your figures are provisional.

31 January - if you sent provisional figures on 19 May, send corrected figures now, and pay the balance of any tax and NICs due. Remember that interest will be payable on any additional tax and NICs due from 19 April until the date paid. If necessary, issue a corrected P60 to your employee at the same time. If you do not do this, penalties may apply.

You should continue to operate PAYE and pay NICs in the usual way on any salary paid to you during the year, and report any taxable benefits (such as a company car) to HM Revenue & Customs on form P11D. The deadline for submitting form P11D to HM Revenue & Customs is 6 July. Penalties can be applied if it is not received within 14 days of the deadline.

Subjects covered in this guide

• Introduction
• Do the rules apply to me?
• Get an expert opinion
• My contract is within IR35 - what should I do next?