IR35 Calculator
Compare estimated UK contractor take-home pay inside IR35 versus outside IR35 through a limited company.
Annual gross fees: £99,000
Inside IR35 (PAYE-style)
£67,977
Taxed like employment income
Outside IR35 (Ltd company)
£60,037
Corporation tax + dividends
Outside IR35 is estimated to net £7,941 less per year.
A simplified estimate: inside IR35 uses standard PAYE income tax and National Insurance; outside IR35 assumes a 19% small-profits corporation tax rate and standard dividend tax bands, and does not account for the Employment Allowance, VAT, pension contributions, or accountancy fees. Consult a specialist accountant for your actual IR35 status and tax position.
How the IR35 Calculator works
Enter your day rate, billable days per year, and allowable expenses. The calculator estimates take-home pay both ways — taxed like an employee (inside IR35) and via a limited company's corporation tax and dividends (outside IR35) — so you can compare.
Frequently asked questions
What is IR35?
IR35 is UK tax legislation that determines whether a contractor working through a limited company should be taxed like an employee ("inside IR35") or can be taxed more like a business ("outside IR35").
Does this tell me my actual IR35 status?
No — that depends on your specific working arrangement and contract terms. This tool only estimates the take-home pay difference between the two scenarios.