Contractors need to submit correct IR35 figures by January
Contractors who have operated the IR35 concession to delay making a return and payment for the tax year ending 5th April 2015, have until 31st January 2016 to submit accurate figures and pay any outstanding amounts.
The concession operates where a provisional PAYE return and payment have been submitted but cannot be confirmed because final figures were not known at the end of the 2014/15 tax year.
Where IR35 has applied to any contract during the year ended 5th April 2015, then the correct deemed payment must be calculated and adjustments to the provisional return should be reported on an Earlier Year Update (EYU) and be submitted electronically to HMRC between 20 April 2015 and 31 January 2016.
Interest will be charged on any balancing payment in the normal way, to the date of full payment.
HMRC will not be issuing reminder letters.
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