The following Employment Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This note covers:
the position where the tax rules for off payroll working (IR35) are not the same as those for NIC, and
how a personal service company (PSC) can be used to split income between partners and family members, thereby reducing the total tax and NIC due
For an outline of rules, see the Personal service companies ― overview guidance note. For the rules, see the Anti-avoidance rules ― off payroll working (IR35) guidance note. For the calculation methodology, see the Off payroll working (IR35) ― calculating the deemed employment payment guidance note.
The tax rules were specifically extended to include office-holders for 2013/14 onwards but HMRC’s view is that no separate NIC legislation was required to apply Class 1 NIC to the deemed employment payment in the case of office-holders. There is legislation on the definition of office-holders for the purposes of Class 1 NIC included in the National Insurance Contributions Act 2014, but this is only a clarification about the definition of ‘employed earner’ in the case of office-holders generally. Both tax and NIC can apply to office-holders caught by the rules following the Finance Act 2013 extension.
Separate legislation exists for tax and NIC. In most cases, both sets of legislation produce the same outcome, so that an engagement will either be within
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