Inside vs Outside IR35: Take-Home at a Glance
Here's what the calculator shows at the most common UK contractor day rates (2025/26, 220 days, England/Wales):
| Day Rate |
Outside IR35 (Ltd) |
Inside IR35 (Umbrella) |
Annual Gap |
Rate Uplift Needed |
| £300/day |
~£51,500 |
~£41,800 |
~£9,700 |
+23% |
| £400/day |
~£65,500 |
~£52,800 |
~£12,700 |
+23% |
| £500/day |
~£79,500 |
~£63,500 |
~£16,000 |
+23% |
| £600/day |
~£91,800 |
~£74,200 |
~£17,600 |
+22% |
| £700/day |
~£103,000 |
~£84,500 |
~£18,500 |
+22% |
Calculate your exact figure
The table above uses typical assumptions. Enter your own day rate, working days, and expenses to see your precise take-home.
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What Our IR35 Calculator Covers
📊 Compare: Inside vs Outside IR35
Side-by-side take-home comparison at your day rate. See the exact annual gap and the rate uplift you'd need to break even inside IR35.
🏢 Outside IR35 (Limited Company)
Full limited company model: salary/dividend split, corporation tax, expenses, VAT flat rate, pension contributions, and accountancy fees. Automatically picks the optimal salary (£9,100 or £12,570).
☂️ Umbrella Company
Net pay after umbrella margin, employer NI, PAYE, and employee NI. Includes pension contribution modelling.
💼 Perm vs Contract
Compare a permanent salary (with employer pension) to a contract rate inside or outside IR35.
🔄 Day Rate Converter
Convert between day rate, hourly rate, and annual salary instantly.
📅 2025/26 and 2026/27
Switch between tax years. The 2026/27 option includes the April 2026 dividend rate changes.
Why Use This IR35 Calculator?
Most IR35 calculators online are outdated, gated behind email capture, or run on incorrect tax rates. This one is different:
- Uses exact HMRC rates for 2025/26 and 2026/27 — not estimates
- Includes the 15% employer NI rate (many older calculators still use 13.8%)
- Covers Scottish income tax bands
- Runs entirely in your browser — your data never leaves your device
- No signup, no email capture, no paywall
Frequently Asked Questions
Is there a free IR35 calculator?
Yes. IR35Guide.co.uk offers a free IR35 calculator covering 2025/26 and 2026/27 tax years. It compares inside vs outside IR35 take-home pay, umbrella vs limited company, and perm vs contract — all running in your browser with no signup required.
How accurate is an IR35 calculator?
Our calculator uses the exact HMRC tax rates, NI thresholds, and dividend rates for 2025/26 and 2026/27. It includes the 15% employer NI rate, the correct secondary threshold (£5,000), Scottish income tax bands, and the optimal salary/dividend split for limited company contractors. All calculations run client-side using the same formulas a qualified accountant would use.
What day rate do I need inside IR35 to match my outside IR35 take-home?
Typically you need a 22–23% rate increase. At £500/day outside IR35, you'd need approximately £615/day inside IR35 to achieve the same net income. Use our Compare calculator to model your specific situation.
Does the IR35 calculator include the April 2026 changes?
Yes. The 2026/27 tax year option includes all April 2026 changes: the new small company IR35 thresholds, updated dividend tax rates, and the employer NI at 15% with the £5,000 secondary threshold.
What's the difference between inside and outside IR35 take-home pay?
At £500/day (220 days/year), outside IR35 through a limited company yields approximately £79,500 take-home. Inside IR35, that drops to approximately £63,500 — a gap of roughly £16,000 per year, or about 20% of take-home pay. The gap exists because inside IR35 you pay income tax and employee NI on the full amount, while outside IR35 you can extract profits as dividends taxed at lower rates.