FREE • Instant Results • Updated for 2025/26 Tax Rates

IR35 Calculator UK

Compare Inside vs Outside IR35 Take-Home Pay

See exactly how much you'll keep inside IR35 (PAYE) vs outside IR35 (Limited Company). No signup required. Instant calculations with 2025/26 tax rates.

Used by 500+ contractors
Quick2-minute calculation
Accurate2025/26 tax rates

See Real Savings

Compare actual take-home pay for inside vs outside IR35 contracts

2025/26 Tax Rates

Updated with latest UK tax rates, NI, and corporation tax

Instant Results

No signup required. Get your comparison in under 2 minutes

Compare your take-home pay under different IR35 scenarios

Your Details

Outside IR35 only (travel, equipment, etc.)

Salary sacrifice or personal contribution

Inside IR35 only

Outside IR35 only (typically £12,570)

Inside IR35 (PAYE)

£62,105
Net Take-Home
Gross Income:£99,000
Income Tax:£18,734
Employee NI:£3,701
Employer NI:£14,100
Umbrella Fees:£360
Effective Rate:37.3%

Outside IR35 (Ltd Co)

£67,336
Net Take-Home
Company Turnover:£99,000
Corporation Tax:£17,109
Salary (net):£12,570
Dividends (net):£54,766
Effective Rate:32.0%

Outside vs Inside Comparison

+£5,231
Annual Difference
+8.4%
Percentage Difference
Export detailed breakdown

Outside IR35 could save you £5,231 per year (8.4% more take-home pay)

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Important Disclaimer

This calculator provides estimates based on standard UK tax rates and allowances for 2025/26.

Actual tax liability may vary based on individual circumstances, expenses, pension contributions, and other factors. Always consult a qualified accountant for personalized advice.

Calculation Assumptions & Sources

Inside IR35 (PAYE)

  • • Employer NI funded from assignment rate (typical umbrella approach)
  • • Umbrella company fees deducted from gross pay
  • • Standard PAYE tax and NI calculations apply
  • • Limited expense allowances

Outside IR35 (Limited Company)

  • • Corporation tax on company profits
  • • Salary + dividend optimization strategy
  • • Business expenses fully deductible
  • • Dividend allowance and rates applied

Tax Rates & Sources (2025/26)

Income Tax:

Personal Allowance: £12,570 (tapers above £100k)

Basic rate: 20% to £50,270

Higher rate: 40% to £125,140

Additional rate: 45% above £125,140

Source: GOV.UK Income Tax rates

National Insurance:

Employee: 8% main rate (2% above UEL)

Employer: 15% from April 2025

Secondary Threshold: £5,000/year

Source: BDO, Sage UK, Moneysoft

Corporation Tax:

Small profits rate: 19% (≤£50k)

Main rate: 25% (≥£250k)

Marginal relief between £50k-£250k

Source: GOV.UK Corporation Tax rates

Dividend Tax:

Allowance: £500

Basic rate: 8.75%

Higher rate: 33.75%

Additional rate: 39.35%

Source: 1st Formations

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