Skip to main content

Service changes and updates IR offices, myIR and phone lines (SPK2IR) are unavailable until the morning of Thursday 28 October for planned system maintenance. Find out more

Resurgence Support Payment (RSP) You will not be able to apply for the RSP in myIR until the morning of Thursday 28 October. Businesses affected by the alert level increase that started on 17 August can apply in myIR from 28 October. Applications for a 4th payment round are planned to open on 29 October. Find out more

Resurgence Support Payment (RSP) The government has announced an increase to the amount and frequency of the RSP from 12 November. Find out more

Your main income

If your IR56 income is your main income you calculate PAYE and other deductions using your relevant tax code. You need to check each month if you’re entitled to the independent earners tax credit (IETC).

Tax codes and tax rates for individuals

Independent earner tax credit (IETC)

Your secondary income

If your IR56 income is your secondary income, you have three options to calculate PAYE and other deductions.

Standard option

You can use a secondary tax code.

Tailored tax code option

When some people use a standard tax code they pay the wrong amount of tax and then get a large tax bill or tax refund at the end of the year. You can avoid this by applying for a tailored tax code.

Self-calculating option

Instead of using a secondary tax code you can use the self-calculating method. Your tax code will be STC. This lets you work out how much tax you should pay on your IR56 income.

This option looks at the income and PAYE deducted from your main source of income. It helps you pay a more accurate amount of tax.

Self-calculate IR56 PAYE

Last updated: 20 Oct 2020
Jump back to the top of the page