Andrew works through an MSC providing his services to Z Plc. He spends £40 per week travelling to Z's premises. On Friday 27 April 2015 Andrew makes his first payment out of the company since 6 April, drawing the sum of £1,000.
This occasions the calculation of the first deemed employment payment, which is computed as follows:
Step 1—gross payment
Gross amount of payments and benefits = £1,000
Step 2—deduct expenses
Expenses deductible = NIL
(the travelling expenses now relate to a permanent workplace and are not allowable)
Step 3—calculate the Class 1 NIC
Whereas under IR35 this is an annual process, for MSCs, the computation
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 17:44