Will I be taxed twice if my Personal Service Company does not pay me a salary until after the end of the tax year?
Where an IR35 deemed payments arises, the worker receives nothing from the intermediary. Subsequently he or she may wish to draw money from the intermediary. Should the money be paid out as a salary then the normal Income Tax and NICs liabilities will arise on that amount. Any salary paid in a later year will reduce the amount of the IR35 deemed payment in the year it is paid.
In order to avoid double taxation of the IR35 deemed payment, the legislation
provides for a distribution to be made up to the amount of the deemed payment
without additional liability arising.
Please also see the Revenue's letter dated 24 August
2000, which can be found on this website in response to an article in
Taxation magazine on this issue.
| Home | ||||
