If we remove / shift the DDP in the company accounts by crediting the DLA. (See Robert Lovitt above). Basically, the DDP is ignored totally by LTD Co.

Debit Bank £4,129 Credit DDP income £4,129 BEFORE
Debit DDP income £4,129 Credit DLA £4,129 AFTER

Where do we show it on the individual's Self Assessment Tax Return?

https://www.gov.uk/guidance/ir35-what-to-do-if-it-applies#self-assessment-tax-return

The deemed employment payment is treated as your worker’s employment income from you or a partnership. Your worker should include it with any other employment income on their Self Assessment tax return.

This all sounds too simple........

Then there is this. I understand that this method is in line with the old IR35 rules...

https://www.rossmartin.co.uk/employers/essential-know-how/191-ir35#overview-and-faqs

Planning for the deemed payment

Given that PAYE and NICs apply to his income, it is practical for the worker to pay himself by salary throughout the year. At the end of the year, or end of the contract, whichever ends first, he must make a deemed payment calculation. He can deduct any actual salary and NICs paid, paying HMRC any balance that is still owning.

There is little point in paying dividends as well as PAYE and NICs on the deemed payment: you may as well just treat the deemed payment as if is actual pay.

When the intermediary company incurs costs over and above the fixed 5% or those which would be allowable under normal employment rules, these will result in it making Corporation Tax losses.

If we remove / shift the DDP in the company accounts by crediting the DLA. (See Robert Lovitt above). Basically, the DDP is ignored totally by LTD Co.

Debit Bank £4,129 Credit DDP income £4,129 BEFORE
Debit DDP income £4,129 Credit DLA £4,129 AFTER

Where do we show it on the individual's Self Assessment Tax Return?

https://www.gov.uk/guidance/ir35-what-to-do-if-it-applies#self-assessment-tax-return

The deemed employment payment is treated as your worker’s employment income from you or a partnership. Your worker should include it with any other employment income on their Self Assessment tax return.

This all sounds too simple........

Then there is this. I understand that this method is in line with the old IR35 rules...

https://www.rossmartin.co.uk/employers/essential-know-how/191-ir35#overview-and-faqs

Planning for the deemed payment

Given that PAYE and NICs apply to his income, it is practical for the worker to pay himself by salary throughout the year. At the end of the year, or end of the contract, whichever ends first, he must make a deemed payment calculation. He can deduct any actual salary and NICs paid, paying HMRC any balance that is still owning.

There is little point in paying dividends as well as PAYE and NICs on the deemed payment: you may as well just treat the deemed payment as if is actual pay.

When the intermediary company incurs costs over and above the fixed 5% or those which would be allowable under normal employment rules, these will result in it making Corporation Tax losses.

Hi

If the accounts are showing net fee received of £4129. Can we simply remove this to the Directors loan account as it is not taxable either as a dividend or a salary...So debit Deduction for DDP in the P&L account and Credit Directors loan with the £4129 - therefore nil tax effect in accounts? Especially where the director may not draw it all at once?