• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Inside IR35 - no dividend payments at all?

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    #31
    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.
    Will work inside IR35. Or for food.

    Comment


      #32
      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!

      Comment


        #33
        Okay, I may be wrong.
        Will work inside IR35. Or for food.

        Comment


          #34
          Originally posted by VectraMan View Post
          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.....

          Comment


            #35
            Originally posted by Whoknows View Post
            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.

            Comment


              #36
              Originally posted by Unix View Post
              Who told you, you were inside? I have a bridge I want you to buy.
              Sorry what?

              Comment


                #37
                Originally posted by Whoknows View Post
                Sorry what?
                You are only inside if you are permie.

                Comment


                  #38
                  Originally posted by Unix View Post
                  You are only inside if you are permie.
                  Thank you for your contribution to the discussion.

                  Comment


                    #39
                    Originally posted by Unix View Post
                    You are only inside if you are permie.
                    Sorry what
                    Connect with me on LinkedIn

                    Follow us on Twitter.

                    ContractorUK Best Forum Advisor 2015

                    Comment


                      #40
                      Originally posted by LisaContractorUmbrella View Post
                      Sorry what
                      IR35 is de-facto dead, its kept around to scare newbies into handing over their cash.

                      Comment

                      Working...
                      X