IR35 Understanding

[MikeC1408]

Is my understanding of IR35 correct

If I'm in a contract and invoice for £10k a month.

Depending if the contract is deemed

Outside IR35 - I only pay PAYE on the amount of my chosen salary. Divs are taxed separetley and profit at the current Corp Tax Rate.

Inside IR35 - PAYE on the whole 10K.

Thanks

[Sockpuppet]

Inside IR35 - PAYE on the whole 10K.

Well.

10K - 5% expenses.

I also think there are some expenses which are outside the 5%.

Or you could just run the risk of getting caught and do min salary and max divs.

[MikeC1408]

Thanks

I'm doing min pay and divs, just wanted to see if my understanding was correct.

[exbrm]

Nursery School Question Time

4 F's Sake - you are on £120k turnover and you have a question like this? Bring in the EU IT guys I say.........

[TheFaQQer]

Is my understanding of IR35 correct

If I'm in a contract and invoice for £10k a month.

Depending if the contract is deemed

Outside IR35 - I only pay PAYE on the amount of my chosen salary. Divs are taxed separetley and profit at the current Corp Tax Rate.

Inside IR35 - PAYE on the whole 10K.

Thanks

separately

HTH

[xoggoth]

You can claim any expenses an employee can claim in same circumstances + 5% to cover the extra costs accountants etc.

PS £10k a month? I hate you.

[TheFaQQer]

£10k a month? I hate you.

If I'm in a contract and invoice for £10k a month.

Key word - if.

Mind you, it's not unreasonable in the right market.

[MikeC1408]

Key word - if.

Mind you, it's not unreasonable in the right market.

Just a figure plucked from the air as I was typing the question.

Just wanted to check my understanding of IR35 was correct as I'm a contracting newbie.

Will be joining the QDOS Freelancers club to get my contracts reviewed.

Thanks

[malvolio]

Just a figure plucked from the air as I was typing the question.

Just wanted to check my understanding of IR35 was correct as I'm a contracting newbie.

Will be joining the QDOS Freelancers club to get my contracts reviewed.

Thanks

Tut tut tut...

Nothing against QDOS, but you should also take a look the the PCG - and read their first-timers guide while you're there. It will answer a lot of questions, some of which you probably haven't got to yet! www.pcg.org.uk

[hugebrain]

Please cut down PCG spam?

Please can you PCG people reduce the amount of advertising you put in this forum?