IR35 Calculator

Free IR35 Calculation

In order to calculate your IR35 risk, book a free consultation with one of our experienced IR35 consultants. This is a free service in which a consultant will take you through an in-depth IR35 calculation based on your individual circumstances to determine the financial risk you may face as a contractor should you be found caught by the legislation (not including penalties, interest, or representation fees if uninsured).

You will need the following information to hand in order for one of our experts to provide you with an appropriate calculation:

• how long you have been contracting
• your average day rate
• your VAT rate
• your annual PAYE salary
• your average travel and subsistence expenses claimed per month
• your business insurance and accountancy fee expenditure per month

Calculate your potential IR35 risk

Should HMRC enquire into your accounts and determine that you are a 'disguised employee', therefore should have been taxed as such, they will raise a determination for the IR35 tax liabilities and National Insurance contributions they deem that you should have paid, along with interest and a potential penalty.

This can run into the tens of thousands depending on the period in question, your day rate, and expenses claimed, which can also come into question. Expenses for travel and subsistence, for example, are not claimable when operating inside IR35 from April 2016, and so these would also need to be repaid.

Recent cases of Christa Ackroyd Media (CAM) Ltd, a BBC presenter, and Dragonfly Consultancy Ltd, an IT contractor, were found to owe £419,151 and £99,000 respectively.

If you hold or are looking to hold IR35 insurance (Tax Liability Cover), calculating your potential liabilities may assist you in assessing your risk to choose an adequate level of cover. This will enable you to ensure that your tax liability doesn’t exceed your policy limit in the event of an enquiry.