So one of my clients asked me, “how do I get paid if, I get paid under IR35 under my new contracts?” Because of the change in law coming up in April 2020.
Do I put that into my personal bank account because it’s already been taxed under IR35 taxed as an employee. And the answer is actually no.
So what happens is you bill from your company in the same way. You take the amount and you add VAT to it, it goes to the end user.
They will deduct paye and national insurance from that amount and then add VAT to it. And so what you will get is net pay, net of tax and national insurance and including national employers, national insurance.
And you also collect the VAT, which you then pay at the end of each quarter paid to HMRC. Now also bear in mind, that so when you get paid, you’ve got to file this thing somewhere.
And we’re told that under IR35 new rules, there’ll be a new PAYE declaration to make it the end of the year on your real time information, your RTI.
Submission to the inland revenue when you do your end of year. So keep those things in mind when you’re looking at, receiving money on your new IR35 in contracts.
And these are going to be a suck it and see that the revenue is supposed to put some guidance out there, but they haven’t. And, and so no surprise, they are surprised. And so just leave it there.
Keep in mind that you do have to take the money into your bank account, but it is reasonably complicated how it fits.
But you know, if you’ve got an account and do understand that, there’ll be no problem for them.
All the best. Take care. Bye.
