How would the company's existing computerised payroll and accounting systems operate under IR35? (Page/Sage/Quicken/Quickbooks have no plans at present to update software to cope with IR35.) Accounting systems cannot process deemed emoluments, they always show the employee being owed the remainder of the actual salary. How do you allow for this in the Profit and Loss account, balance sheet figures and cash flow projections?

The IR35 legislation only requires a single calculation to be done each year. It should be possible to do this manually, if commercial software is not available. The amount of the IR35 deemed payment should be included in the worker's pay for the purposes of calculating the PAYE tax and NIC due, and in the calculation of the company's Corporation Tax liability. But there is no need to include it in the balance sheet or profit and loss account.