We have added another tool to help contractors work out deductions and resulting take home pay from work contracts.
The IR35 calculator builds upon our existing umbrella payslip calculator but provides a summary of different ways of taking contracting income.
The existing umbrella calculator provides thorough individual payslips resulting from an umbrella company receiving income on behalf of a contractor and then making regular payments. The new IR35 calculator is more focused on providing a summarised view of taking income from a contract through either an umbrella company or setting up a personal service company.
The personal service company results are split in two. One summary is where the contract is outside IR35 and the other summary is where the contract is inside IR35. It uses the latest rules regarding contractors using personal service companies that are then deemed to be inside IR35 - and thus shows tax deductions etc being taken by the engaging company before any payment is made to the PSC.
The calculator will automatically figure out how many workdays there are within the contract dates provided and account for days worked per week and adjust for weekends and bank holiday's (depending on the preferences selected). Deductions such as an employers'/payroll pension and student loan can also be selected.
This is the first release of this calculator so further adjustments may be required once the rules are more clearly defined for April 2020-on.