Is it true that if you are working inside IR35, you basically need to empty out the company bank account not once but twice a year?
Firstly before tax year end, because the deemed payment calculation is a personal one so you will end up paying tax+NIC on the income to that date, and then again when you actually pay it out;
Secondly before company year end, because if you have any money left then it will be profit and due for CT, but that won't affect the next deemed payment calculation so you will pay tax+NIC on it as well.
I know:
"why are you paying a voluntary tax?"
"what does your accountant say?"
"do you know how to use the search function?"
"are you sure you're cut out for contracting?"
(don't want the hassle, I'm about to ask, yes, and no but I haven't found anything better)
Firstly before tax year end, because the deemed payment calculation is a personal one so you will end up paying tax+NIC on the income to that date, and then again when you actually pay it out;
Secondly before company year end, because if you have any money left then it will be profit and due for CT, but that won't affect the next deemed payment calculation so you will pay tax+NIC on it as well.
I know:
"why are you paying a voluntary tax?"
"what does your accountant say?"
"do you know how to use the search function?"
"are you sure you're cut out for contracting?"
(don't want the hassle, I'm about to ask, yes, and no but I haven't found anything better)
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