
Set up IR35 in QuickBooks Advanced Payroll
by Intuit•1• Updated 1 week ago
IR35, also called off-payroll working, is a set of rules that determine how contractors are paid. These rules make sure contractors are taxed correctly and fairly. Learn how to set up IR35 in QuickBooks Online Advanced Payroll and add a deemed employee.
For more information, see HMRC IR35 guidance.
Turn on IR35 in QuickBooks
- Go to Payroll.
- Select Payroll Settings.
- Under Business settings, select HMRC Settings.
- Find IR35 contractors and select Yes.
- Select Save.
Add a deemed employee
Before adding a deemed employee, make sure they meet IR35 criteria. Check the employment contract to see if it falls under IR35 rules.
- Check the contract to see if the employee is a deemed employee under IR35.
- Add them to payroll like any other employee.
- In Tax and NI details, select IR35 legislation applies.
- The employee will now be marked as an IR35 contractor.
- Include them in a pay run to calculate tax and NICs.
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