The deemed employment payment is subject to tax and NIC as for any other salary payment, irrespective of whether it is physically paid over to the worker. IR35 works on a strict tax year basis. The calculation of the deemed employment payment is by reference to receipts and payments in a tax year and the deemed payment itself is treated as arising on 5 April unless there is an event giving rise to an earlier calculation (see E4.1019)1. There is only ever a single deemed payment in a tax year, irrespective of how many engagements there are to which the IR35 provisions apply in any tax year2.
RTI regime
From 6 April 2013 PAYE real time information (RTI) applies (although there are delayed commencement provisions for certain employers, see E4.1104) and the rules outlined below are modified accordingly. Any actual payment of salary made during the year should be included on a full payment submission (FPS), and if no such payment is made in a month, an employer payment summary (EPS, see E4.11111)
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