Deemed payment calculation
You'll learn how to calculate deemed employment income under IR35 legislation using the standard pro forma method. This video walks you through a realistic scenario where a pension consultant works through a limited company, showing you how to deduct the statutory 5% allowance and genuine expenses, isolate employer's
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In this lesson
- 0:00 IR35 deemed payment calculation overview
- 0:46 Step-by-step deemed employment income formula
- 2:15 Income tax and National Insurance on deemed payment
- 3:17 Dividend treatment and final summary
About this lesson
National Insurance, and then work out the resulting income tax and employee/employer NIC liabilities. Understanding deemed payments is essential for TX (Taxation) as it tests your grasp of how IR35 rules affect contractor taxation and company deductions. By following the step-by-step pro forma approach, you'll be able to tackle these questions confidently in your exam.
Duration: 4m
Transcript
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