IR35 Take-Home Calculator

Compare your net pay inside vs outside IR35. See the real pound-for-pound cost of a status determination before accepting a contract.

Contract details

Typical: 220 days (5 weeks holiday)

Outside IR35

£67,565

Net take-home per year

Inside IR35

£67,977

Net take-home per year

Outside IR35 puts £412 more in your pocket per year

That is £34/month or 0.0% of revenue

Comparison breakdown

ItemOutsideInside
Annual revenue£99,000£99,000
Corporation tax£20,074
Employer NI£1,136Engager pays
Income tax£0£27,032
Employee NI£0£3,991
Dividend tax£5,226
Take-home£67,565£67,977
Effective rate26.7%31.3%

How it works

  1. 1

    Outside IR35

    Revenue flows into your company. You pay corporation tax on profits, then take a combination of salary and dividends. Employer NI applies on the salary.

  2. 2

    Inside IR35

    Your company receives the fee but it's treated as deemed employment income. Income tax and employee NI are deducted before payment. No dividend option.

  3. 3

    The gap

    Outside IR35 is typically more tax-efficient because dividends are taxed at lower rates than salary, and corporation tax is lower than income tax + NI on the same income.

  4. 4

    Other factors

    IR35 also affects employment rights, pension planning, and MTD obligations. Day rate negotiation to compensate for inside-IR35 status is common.

HMRC sources

Disclaimer: This is a simplified illustration. Actual inside-IR35 calculations depend on the specific contract, deemed payment calculations, and allowable deductions. Get professional advice before accepting or challenging a status determination.

FAQs