Inside IR35 - no dividend payments at all?

[VectraMan]

Yes I have:

Service companies (‘IR35’) legislation - deemed payment calculation
The amount to be included under step 1 of the deemed payment calculation is the VAT exclusive amount whether or not the flat rate scheme is adopted. For the intermediary within the flat rate scheme in the example above the VAT exclusive amount would be £78,960. Irrecoverable VAT relating to allowable expenses met by the intermediary would be allowable as part of the expenses in the same way as if the intermediary was not VAT registered. For more information on IR35, see ESM3000 onwards.

BIM31585 - Value Added Tax: flat rate schemes

Phew.

[Whoknows]

But that £78k they use isn't exclusive of VAT in their example!

A business has gross sales of £84,000 (including output VAT at 20% of £14,000), and expenses of £48,750 (including irrecoverable

They only take the flat rate off to get the £78!

[VectraMan]

Okay, I may be wrong.

[Whoknows]

Okay, I may be wrong.

I've just checked with a different accountant (still waiting for mine to come back to me) and they have confirmed that both the FRS 'gain' and the 5% expenses allowance - are excluded from the IR35 salary calculation, and contribute to a potential company profit.

Conflicting stories.....

[Unix]

Being inside IR35 with a single running contract, no other company income - would there be any circumstances where you could still receive a dividend payment (alongside the large salary)

Looking at the popular calculators (e.g. Nixon Williams) the IR35 output shows a net dividend of £3k+ (on £500/day).

Can someone explain?

Who told you, you were inside? I have a bridge I want you to buy.

[Whoknows]

Who told you, you were inside? I have a bridge I want you to buy.

Sorry what?

[Unix]

Sorry what?

You are only inside if you are permie.

[Whoknows]

You are only inside if you are permie.

Thank you for your contribution to the discussion.

[LisaContractorUmbrella]

You are only inside if you are permie.

Sorry what

[Unix]

Sorry what

IR35 is de-facto dead, its kept around to scare newbies into handing over their cash.