IR35 - Where can I find out how to make the deemed payment calculation?
Information on calculating the deemed payment is included in 'Supplying Services through a limited company or partnership'. This guide tells you what happens when the IR35 legislation applies and includes an example of a deemed payment calculation.
More detailed information on how to calculate the deemed payment is contained in the Employment Status Manual (ESM 3140 onwards).
A number of specific issues are also dealt with in the other Frequently Asked Questions on this website.
IR35 Deemed Payment Calculation Spreadsheet
When the IR35 legislation applies, then tax and NICs must be paid on a minimum amount of salary. This may be either in the form of actual payments during the year or as a notional payment deemed to have been made to the worker by the intermediary. Guidance on how to work out the deemed payment is at Employment Status Manual (ESM 3140 ) but a spreadsheet has now been devised based on the template at ESM 3146 which will do this calculation automatically.
