IR35:
General - Question 12
The IR35 legislation will force my company to trade insolvently - isn't this illegal?
The IR35 legislation simply determines the amount of tax and National Insurance that has to be paid. The IR35 deemed payment and secondary NICs can be deducted in the calculation of a company's profits for corporation tax purposes. There is nothing in the legislation which obliges a company to pay an actual salary of any amount, and therefore nothing that forces any company to trade at a loss.
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