IR35 Calculator
Compare your estimated take-home pay working inside IR35 as deemed employment versus outside IR35 through your own limited company — based on your day rate and contract length.
Compare Inside vs Outside IR35 Pay
IR35 status has a major impact on contractor take-home pay. Enter your day rate and working pattern to see an estimated comparison between being taxed as a deemed employee (inside IR35) and operating through your own limited company (outside IR35).
How the Comparison Works
Understanding inside vs outside IR35 pay
Enter Your Day Rate and Contract Pattern
Provide your day rate, days worked per week, and weeks worked per year to establish your gross annual contract value.
Inside IR35: Deemed Employment
Employer’s National Insurance and the Apprenticeship Levy are deducted from the contract value first, then Income Tax and employee National Insurance are applied to what remains — similar to a normal payslip.
Outside IR35: Your Own Limited Company
Your company pays Corporation Tax on profits after allowable expenses, then income is drawn as a small salary plus dividends, which is generally more tax-efficient.
Compare the Take-Home Difference
See the estimated annual take-home pay for each scenario side by side, along with the overall difference between them.
Inside vs Outside IR35
Adjust the figures below — results update instantly
Applies to the outside IR35 (limited company) scenario only.
Key Rates Used in This Estimate
A summary of the standard UK tax rates and thresholds this calculator applies for the 2025/2026 tax year.
| Rate / Threshold | Applies To | Value |
|---|---|---|
| Personal Allowance | Income Tax | £12,570 |
| Basic Rate | Income Tax (up to £50,270) | 20% |
| Higher Rate | Income Tax (£50,270–£125,140) | 40% |
| Employee NI | National Insurance (£12,570–£50,270) | 8% |
| Employer NI | National Insurance (above £9,100) | 13.8% |
| Small Profits Rate | Corporation Tax (profits up to £50,000) | 19% |
| Dividend Allowance | Dividend Tax | £500 |
| Basic Rate Dividends | Dividend Tax (within basic band) | 8.75% |
IR35 Calculator FAQ
Answers to the most frequently asked questions about IR35 and contractor take-home pay.
IR35 is UK tax legislation designed to identify contractors who are effectively working as employees (‘disguised employees’) despite providing their services through an intermediary such as a limited company. If a contract is caught by IR35, the contractor pays broadly the same Income Tax and National Insurance as an employee would.
For most medium and large private sector clients, and all public sector clients, the end client is responsible for determining IR35 status and must provide a Status Determination Statement. Only for contracts with small private sector clients does the responsibility remain with the contractor’s own limited company.
Inside IR35, the fee-payer must deduct employer’s National Insurance and, where applicable, the Apprenticeship Levy from the contract value before applying Income Tax and employee National Insurance, similar to a normal payslip. Outside IR35, the contractor’s limited company pays Corporation Tax on profits and can extract income as a mix of salary and dividends, which is generally taxed more efficiently.
No, this calculator provides an estimate based on simplified assumptions and standard tax bands. Actual take-home pay depends on individual circumstances, allowable expenses, pension contributions, student loans, and other factors, so figures should be treated as indicative rather than exact.