Do I need a director’s fee in my company if I am captured by IR35?
No - as you can potentially utilise your personal allowance to offset against income taxed at source when paid by your agency into your company.
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- Inside IR35
What is an SDS? – (Status Determination Statement)
An SDS or status determination statement, is a document that summarises an end hirers IR35 assessment for a specific contractor. It determines whether they fall inside or outside IR35, and therefore how they will be paid and taxed.What am I (the Contractor) Responsible For?
From April 2021, it is the end hirers responsibility to assess IR35 status on behalf of you, the contractor. So even if you are a director of your own limited company, you no longer have that responsibility moving forward.Who is the Fee Payer or Deemed Employer?
If you are inside IR35, your ‘fee payer’ is the party above your Limited Company (PSC) who is responsible for deducting national insurance and tax before paying you net earnings.