IR35 calculator
Compare estimated contractor take-home pay for the same day rate under inside IR35 and outside IR35 scenarios.
This calculator does not determine your IR35 status. It compares simplified take-home scenarios based on the status you select, so you can understand the possible tax and company extraction differences.
IR35 scenario comparison
This calculator does not determine your IR35 status. It compares simplified take-home scenarios based on the status you select.
Selected scenario take-home
£70,443.46
Outside IR35 monthly average: £5,870.29
Input mode
Day rate
Day rate entered
£500.00
Annual contract revenue
£115,000
Billable days
230.0 days
Inside IR35 rate basis
Assignment rate
Inside taxable worker pay
£99,177
Employer-side costs allowed
£14,623
Annual difference
£2,363.12
Monthly difference
£196.93
Inside and outside IR35 comparisons depend heavily on how the rate is quoted. A headline inside-IR35 rate may not be directly comparable with an outside-IR35 limited company rate.
Approximate gross PAYE salary needed to match each scenario's take-home pay.
Estimate only. This does not determine IR35 status and does not replace advice from an accountant or tax adviser. Umbrella payslips can differ because of holiday pay, employer NI treatment, apprenticeship levy, pension, umbrella margin and agency/client arrangements.
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With a £500 day rate, 5 billable days per week and 46 working weeks, the page compares the same estimated assignment revenue under simplified inside IR35 payroll treatment and outside IR35 limited company extraction. The inside result changes depending on whether the rate is worker gross pay or an assignment rate before employer-side costs.
Contract revenue is based on day rate and billable days. Inside IR35 is treated more like employment income for tax purposes. Outside IR35 models limited company extraction using salary and dividends. It compares scenarios, not legal status.
It includes income tax, employee National Insurance, student loan and pension where selected, plus corporation tax and dividend tax assumptions for outside IR35. Umbrella/admin fees are included only when entered.
It does not include a formal IR35 decision, detailed contract review, VAT, full umbrella payslip rules, apprenticeship levy, employer NI complexity, agency margin, insurance, accountancy fees unless entered, benefits, sick pay or job security.
Results can differ if an umbrella company handles holiday pay differently, employer NI is treated differently, VAT or agency margin matters, expenses are incomplete, pension contributions change, or outside IR35 is not a valid engagement.
Inside IR35 is taxed more like employment income, while outside IR35 usually involves limited company profit, corporation tax and dividends. Those are different tax routes, so a headline rate is not always comparing like with like.
Inside IR35 rates may be quoted as worker gross taxable pay, or as an assignment rate before employer National Insurance, apprenticeship levy and umbrella/admin margin are allowed for. This calculator lets you choose the basis rather than hiding that assumption.
Hourly and day rates both need to be converted into realistic annual revenue. Unpaid weeks, holidays, sickness, admin time and gaps between contracts can matter as much as the rate itself.
Umbrella company payslips can differ because of holiday pay, employer-cost treatment, pension rules, provider fees and agency or client arrangements. The calculator compares simplified scenarios and does not determine IR35 status.
IR35 status depends on the actual contract and working practices. These results are simplified planning estimates and do not replace HMRC guidance, a contract review, an accountant or tax adviser.
Inside IR35 usually means the engagement is taxed more like employment income. Outside IR35 usually means the contractor can operate through a limited company and extract income using salary and dividends, assuming the contract and working practices support that status.
No. It does not assess the contract or working practices. It only compares simplified take-home scenarios after you choose an inside or outside IR35 assumption.
Inside IR35 income is commonly taxed through payroll-style deductions, so income tax and employee National Insurance can apply to more of the assignment income. Actual umbrella or fee-payer payslips can still differ.
Not necessarily. IR35 is a tax status concept. Employment rights, benefits and legal employment status are separate questions.
Only if you enter an umbrella or admin fee. The model does not fully reproduce every umbrella payslip rule, holiday-pay treatment or provider-specific deduction.
No detailed employer National Insurance or apprenticeship levy calculation is included in this phase. Do not treat the inside IR35 result as a complete umbrella payslip.
Use a realistic billable pattern after holidays, sickness, training, admin and gaps between contracts. The default is 5 days per week for 46 weeks.
It is the approximate gross PAYE salary needed to produce the same annual take-home as a selected contractor scenario, using the salary calculator assumptions.