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Over to you, Dawn

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30 October 2000
Issue: 3781 / Categories: Forum & Feedback , IR35
If I was to compute my 'deemed payment' under IR35 on 31 March, hold a board meeting and vote myself the amount equal to the deemed payment as a salary bonus, could I avoid having to pay over the tax and National Insurance contributions on 19 April?


I would then be able apply the tax and National Insurance contributions when I drew the bonus out of the company over the next nine months following normal pay-as-you-earn rules.
Apart from the obvious cash flow advantages it would mean I would not have to mess around with dividends anymore. I could also ensure that I got corporation tax relief if I was one of those who would miss out by having a 31 March year-end.
Readers' views are welcome.
(Query T15 701) Lucky.

There are two problems with this proposal but this does not mean that it is not worthwhile. The first concerns the pay-as-you-earn/National Insurance contributions rules; the second the IR35 legislation.
Looking first at the pay-as-you-earn rules a director is taxable on the earliest of the various scenarios set out in section 203B(1) Taxes...

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