IR35 Take-Home Calculator
Compare take-home pay inside IR35 (umbrella) vs outside IR35 (limited company) for the same day rate — plus the inside rate to match it.
The Steps
How to use this calculator
0 of 6 steps
- Before You Go 1 min
Enter your day rate and billable days
Your day rate times your billable days is the contract value both columns start from. 220 days ≈ 44 weeks × 5 days, allowing for holidays and gaps between contracts.
Click to mark as done
- Fill / Prepare 1 min
Enter your umbrella margin
Inside IR35, the umbrella company takes its margin from your assignment rate before PAYE. Enter your umbrella company’s actual monthly margin (typically £20–£30).
Click to mark as done
- Fill / Prepare 2 min
Enter your limited-company costs
Outside IR35, accountancy fees and business costs come out of company profit before Corporation Tax and dividends. Enter your real figures — defaults are typical values, not yours.
Click to mark as done
- Fill / Prepare 1 min
Pick your tax year and director salary
Dividend tax rates changed in 2026/27 (10.75% / 35.75% vs 8.75% / 33.75% in 2025/26). Compare the £12,570 and £5,000 salary options — £12,570 usually wins because it uses the full Personal Allowance.
Click to mark as done
- Fill / Prepare 2 min
Calculate your take-home
Enter your figures in the calculator below — it works out inside vs outside take-home, every tax and deduction, and the inside day rate you would need to match your outside take-home.
Calculator
IR35 Take-Home Calculator
Compare take-home pay inside IR35 (umbrella) vs outside IR35 (your own limited company) for the same contract — and the inside day rate you would need to match the outside take-home.
Inside IR35 — take-home (annual)
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Inside IR35 — take-home (monthly)
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Inside — employer NI (from your rate)
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Inside — Income Tax
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Inside — employee NI
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Outside IR35 — take-home (annual)
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Outside IR35 — take-home (monthly)
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Outside — Corporation Tax
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Outside — dividend tax
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Extra take-home outside IR35
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Inside day rate to match outside take-home
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Per day, same billable days
Estimate only. Estimate only. Standard case: England, Wales or Northern Ireland; single-director company; no pension contributions, student-loan repayments, or other income; no Employment Allowance (not available to single-director companies); no apprenticeship levy; umbrella margin as entered. Your accountant or umbrella company governs. Source: HMRC — off-payroll working (IR35), dividend tax, Corporation Tax, NI rates
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- Follow Up 10 min
Compare — and negotiate the inside rate
If an inside-IR35 offer pays less take-home than your outside rate, use the “inside day rate to match” figure as your negotiation target. Employer NI comes out of the inside rate, not on top of it.
Click to mark as done
Legal basis
Official rules
Every rate and threshold this calculator applies comes from HMRC guidance named below. Dividend rates changed on 6 April 2026 — the calculator applies the right year’s rates for the tax year you pick.
Off-payroll working (IR35): if you would have been an employee without the intermediary, you are taxed broadly like one. Medium/large private-sector and all public-sector clients determine status; small private-sector clients leave it to your company.
Dividend tax: £500 dividend allowance. 2026/27 rates on dividends above the allowance: 10.75% basic, 35.75% higher, 39.35% additional. 2025/26 rates: 8.75% / 33.75% / 39.35%. Dividends stack on top of your other income (salary first).
Source: Tax on dividends — GOV.UK
Corporation Tax: 19% small profits rate (profits ≤ £50,000), 25% main rate (profits > £250,000), marginal relief with standard fraction 3/200 between — an effective 26.5% on the slice inside the band.
National Insurance (2026/27): employee 8% between the Primary Threshold (£12,570) and the Upper Earnings Limit (£50,270), 2% above; employer 15% above the Secondary Threshold (£5,000). Same thresholds in 2025/26.
Source: Rates and thresholds for employers 2026 to 2027 — GOV.UK
Income Tax: Personal Allowance £12,570, tapering £1 per £2 above £100,000; bands 20% to £37,700, 40% to £125,140, 45% above (England, Wales, Northern Ireland). No Employment Allowance for single-director companies — the employer NI on the director salary is a real cost.
Where no official English page publishes a rule, we cite the law itself by name and article, and link the law text or the labour authority's own reporting — labelled as such. Rates and thresholds are as stated for the date shown; always confirm against the official source before acting.
FAQ
Frequently Asked Questions
What is IR35?
IR35 is the off-payroll working rules. If you work through your own limited company (or another intermediary) but would have been an employee if you worked directly for the client, the rules tax you broadly like an employee: Income Tax and National Insurance through PAYE, with employer National Insurance coming out of the contract rate.
Who decides if I am inside or outside IR35?
For public-sector clients and medium or large private-sector clients, the client decides and issues a Status Determination Statement. For small private-sector clients (and wholly overseas clients), your own company decides under the original Chapter 8 rules. HMRCHM Revenue & Customs — The UK tax authority. It collects income tax, issues National Insurance numbers, and runs Self Assessment.Click for official info ↗’s CEST tool can help assess a specific engagement.
Why is inside-IR35 take-home lower than outside?
Inside IR35, employer National Insurance (15% above £5,000) is deducted from your assignment rate before PAYE, and you pay Income Tax plus employee NI on the rest. Outside IR35, the company pays Corporation Tax on profit and you take the rest as dividends — dividends carry no National Insurance and lower rates than PAYE income tax.
Is there a 5% expenses allowance inside IR35?
Not under the off-payroll (Chapter 10) rules, where the client determines your status — there is no 5% allowance. It survives only under Chapter 8, where a small or wholly overseas client is involved and your own company works out the deemed employment payment.
Should I take a £5,000 or £12,570 director salary in my limited company?
Usually £12,570 wins: it uses the full Personal Allowance, and the extra £7,570 costs only 15% employer NI (£1,135.50), which is itself deductible for Corporation Tax. Use the calculator’s salary option to compare both on your own numbers.
Is this financial advice?
No. This calculator is informational only, not tax or financial advice. It covers the standard case — England, Wales or Northern Ireland, single-director company, no pension, student loan, or other income. Confirm your position with your accountant or umbrella company, and check your Status Determination Statement for each engagement.
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