NewIR35 contractor calculator

Inside or outside, know your number.

Compare umbrella PAYE with a limited company side by side. Employer NI, Corporation Tax, dividends and student loans are all calculated live from your day rate.

2026/27 tax, NI & dividend rates
Corporation Tax marginal relief
Private — nothing leaves your device

Tax year 2026/27

Contract details

Daily rate

£0£400£800£1,200+

Days per week

Weeks per year

46 weeks allows for holidays, bank holidays and gaps between contracts.

Tax year

UK tax region

Annual business expenses

Accountancy, insurance, equipment, software. Outside IR35 these reduce company profit; inside IR35 they're usually not tax-deductible, so you pay them from take-home.

Annual pension contribution

Inside IR35 it's paid through payroll. Outside IR35 it's an employer contribution from your company, free of tax and NI.

Repayment plan

Postgraduate Loan

6% of income above £21,000.

Employer NI and fees

Deducted from rateUmbrella: employer NI, levy and fee come out of the assignment ratePaid separatelyAgency or client payroll: rate is your gross salary

Umbrella fee per week

Apprenticeship Levy (0.5%)

Most large umbrella companies pass this cost on to contractors.

Pension through payroll

Director's salary

Employer NI on this salary: £1,136.

Profit paid as dividends

Anything not paid out stays in the company and isn't counted as take-home.

Claim Employment Allowance

Not available if you're the only employee paid above £5,000.

Difference in take-home

Estimated per month more outside IR35 on a £115,000 contract.

Inside IR35: £5,509/mo
Outside IR35: £5,946/mo

Where the contract goes

Annual · hover to compare

Inside IR35Take-home 57.5%

Outside IR35Take-home 62.0%

Annual breakdown inside and outside IR35
Category	Inside	Outside
Take-home	£66,105	£71,349
Taxes	£27,120	£40,516
Employee NI	£3,995	£0
Employer NI & fees	£15,779	£1,136
Expenses	£2,000	£2,000

Inside IR35

Umbrella company

Gross contract value: £115,000
Total deductions: £46,895
Annual take-home: £66,105
Monthly take-home: £5,509

Contract value: £115,000
Umbrella fee: −£1,150
Employer NI: −£14,133
Apprenticeship Levy: −£496
Gross salary: £99,221
PAYE Income Tax: −£27,120
Employee NI: −£3,995
ExpensesPaid personally, not tax-deductible: −£2,000
Take-home pay: £66,105

Employer costs come out of your rate. Your assignment rate funds employer NI (15% above £5,000), the Apprenticeship Levy and the umbrella fee before your gross salary is set. That's why your gross pay is lower than the contract value.

Outside IR35

Limited company

Gross contract value: £115,000
Total deductions: £41,651
Annual take-home: £71,349
Monthly take-home: £5,946

Company turnover: £115,000
Business expenses: −£2,000
Director's salary: −£12,570
Employer NI: −£1,136
Profit before tax: £99,295
Corporation Tax25% main rate less marginal relief: −£22,563
Dividends paid: £76,731
Dividend Tax£500 at 0% · £37,200 at 10.75% · £39,031 at 35.75%: −£17,953
Take-home pay: £71,349

Salary plus dividends. Your company pays Corporation Tax on profit (22.7% effective, including £2,261 marginal relief). Dividends then use the £500 allowance and are taxed at 10.75%, 35.75% or 39.35%, usually through Self Assessment.

Your IR35 status isn't a choice

Whether a contract is inside or outside IR35 depends on your actual working arrangements, not on which option leaves you with more take-home pay. For most medium and large clients, the client decides and issues a Status Determination Statement. This comparison is for planning only.

Control
Who decides how, when and where the work is done.
Substitution
Whether you could genuinely send someone else to do the work.
Mutuality of obligation
Whether the client must offer work and you must accept it.

Check employment status with HMRC

How we calculate

Assumptions

You can change the key assumptions in the calculator. The rest are listed here.

2026/27 rates: 1257L Personal Allowance, tapered above £100,000. Employee NI 8% / 2%.
Employer NI 15% above £5,000. Apprenticeship Levy 0.5% where selected.
Corporation Tax 19% up to £50,000, 25% from £250,000, with 3/200 marginal relief between. Assumes a 12-month accounting period and no associated companies.
Dividend allowance £500; dividend rates 10.75%, 35.75% and 39.35%.
Outside IR35 assumes you're the only director-shareholder and no other income. VAT is excluded from both scenarios.
Inside IR35, expenses are treated as paid from your take-home, as travel and subsistence relief usually isn't available.