If IR35 does apply to my contract what does this mean?

If IR35 applies, your company will have to pay Income Tax and National Insurance Contributions that it would not otherwise have had to pay.

As Income Tax and National Insurance Contributions are more usually associated with a salary rather than business income, IR35 includes a calculation to convert contract income into a taxable salary amount known as a ‘deemed salary’.

 

For more information on IR35 and the upcoming changes to the private sector, take a look at our IR35 hub.