IR35 Help!

[Eirikur]

The liability to tax if you were caught by IR35 is based on the turnover from IR35 engagements (less certain 'qualifying expenses'), not on profit earned by the company (irrespective of whether it has been declared as a dividend).

Craig

thanks Craig, one more question which seems like kicking in an open door, but I see this nowhere mentioned: corporation tax paid is, I suppose also deducted, from the total

[Craig at Nixon Williams]

thanks Craig, one more question which seems like kicking in an open door, but I see this nowhere mentioned: corporation tax paid is, I suppose also deducted, from the total

Under IR35, the deemed salary would be treated as an expense and deducted from the profits on which Corporation tax is charged. If you are caught by IR35 then it is likely that you will have a low Corporation Tax liability but pay more tax overall (due to the additional Income Tax paid on salary).

Hope this answers you question.
Craig

[northernladuk]

thanks Craig, one more question which seems like kicking in an open door, but I see this nowhere mentioned: corporation tax paid is, I suppose also deducted, from the total

Could do with going to read up on IR35 is in order I believe. You are getting some pretry fundamental things wrong.

[Jessica@WhiteFieldTax]

Fair comment. I was in hypothetical land, and thats a practical answer.