United Kingdom · Updated for 2026/27
IR35 calculator 2026/27
At £500 a day for 220 days (£110,000), you take home £69,932 a year outside IR35 through your own limited company, and £66,172 inside IR35 through an umbrella: £3,760 more outside.
Type your day rate and days. The calculator shows both routes side by side.
£500 a day × 220 days = £110,000 · England, Wales or Northern Ireland
£3,759.88 a year more outside IR35
Take-home: inside £66,172.12, outside £69,932.00 a year
| Inside IR35 (umbrella) | Outside IR35 (your company) | |
|---|---|---|
| Paid for your work | £110,000.00 | £110,000.00 |
| Taxes the company or umbrella pays | −£14,112.55 | −£22,903.54 |
| Income tax and dividend tax | −£25,786.98 | −£17,164.46 |
| Employee National Insurance | −£3,928.35 | £0.00 |
| Take-home pay | £66,172.12 | £69,932.00 |
| Take-home a month | £5,514.34 | £5,827.67 |
Inside IR35, through an umbrella
| Year | |
|---|---|
| Paid to the umbrella | £110,000.00 |
| Employer National Insurance | −£13,633.12 |
| Apprenticeship Levy | −£479.44 |
| Your gross pay | £95,887.45 |
| Income tax (PAYE) | −£25,786.98 |
| Employee National Insurance | −£3,928.35 |
| Take-home pay | £66,172.12 |
Outside IR35, through your own company
| Year | |
|---|---|
| Paid to your company | £110,000.00 |
| Your salary | −£12,570.00 |
| Employer National Insurance | −£1,135.50 |
| Corporation Tax (with marginal relief) | −£21,768.04 |
| Profit after tax | £74,526.46 |
| Salary plus dividends | £87,096.46 |
| Income tax on salary | £0.00 |
| Dividend tax | −£17,164.46 |
| Take-home pay | £69,932.00 |
Outside: a £12,570 salary and every penny of profit after tax paid out as dividends. Before tax relief on pensions, and with no other income.
How do inside and outside IR35 compare?
The same rate pays very different take-home. Inside IR35, an umbrella company employs you: it pays employer National Insurance (15%) and often the Apprenticeship Levy (0.5%) out of your rate, then runs PAYE on what is left, so you pay income tax and employee NI like anyone with a job. Outside IR35, your own limited company keeps the money, pays you a small salary, pays Corporation Tax on its profit, and pays you the rest as dividends, which are taxed at lower rates than salary.
At £400 a day for 220 days, that is £55,124 inside against £59,543 outside.
How is take-home worked out outside IR35?
- Salary. The calculator starts with a salary of £12,570, the Personal Allowance: it pays no income tax or employee NI, it counts towards your State Pension, and for most contractors it leaves more take-home than a lower salary, because the company saves Corporation Tax on it. The company pays employer NI on it above £5,000: the Employment Allowance does not apply when you are the only director and the only employee. You can change the salary.
- Corporation Tax. 19% on profit up to £50,000, 25% from £250,000, and in between the main rate less marginal relief, so the rate rises gradually.
- Dividends. The profit after tax is paid out as dividends. The first £500 is tax-free (the dividend allowance), then 10.75% in the basic-rate band, 35.75% in the higher-rate band and 39.35% above that. The calculator explains each band in the result.
What should I check before I sign?
Ask whether the umbrella takes the Apprenticeship Levy and a fee out of your rate, and how much: both change your gross pay. For an outside contract, check the client’s status determination and keep records. GOV.UK explains the Employment Allowance rule for single-director companies. For the limited company route in full, with profit kept in the company, use the contractor calculator.
What else can I work out?
- Contractor calculator Your limited company in full: Corporation Tax, salary, dividends and profit kept.
- Day rate calculator The day rate that matches a salary, inside and outside IR35, and the salary a day rate is worth.
- Dividend tax calculator Tax on dividends band by band, after the dividend allowance, with your salary.
- Salary calculator Take-home pay on any salary, with tax codes, Scotland, pensions and student loans.
Every UK tool on one page: salary and tax tools. How the rules work: UK pay and tax guides.
Questions about IR35
What does inside IR35 mean?
The work is treated like a job for tax: you pay income tax and National Insurance through PAYE, as an employee would, even though you are a contractor. Most people inside IR35 are paid through an umbrella company.
Who decides if a contract is inside IR35?
For most contracts with medium and large clients, the client decides and gives you a status determination statement. With a small client, your own company decides.
Why does the umbrella take employer National Insurance from my rate?
The umbrella is your employer, so it owes employer NI (15% of pay over £5,000 a year). It pays that out of the money the agency sends, along with its fee and often the Apprenticeship Levy, and what is left is your gross pay.
Can my company claim the Employment Allowance?
Not if you are the only director and the only employee paid above the secondary threshold. That is why this calculator charges employer NI on your salary in full.
What does this calculator leave out?
Pensions, business expenses inside IR35, an umbrella’s holiday pay arrangements (they do not change the total), and any other income. Outside IR35 you can add expenses. Profit is all paid out as dividends.