Inside or outside IR35
IR35 Status & Take-Home Calculator
See what you actually keep from a contract inside IR35 versus outside it: corporation tax, dividends, employer's NI and PAYE all modelled side by side.
Your contract
Contract value
£
Gross annual income£115,000
IR35 status
£
Not relievable inside IR35
£
Employer contribution / salary sacrifice
£
Used on the outside IR35 path only
Where you pay tax
Tax year
Outside IR35
Via your own limited company
£68,043
£5,670 per month net
- Total deductions
- £40,957
- Effective rate
- 35.6%
Inside IR35
Umbrella or fee-payer PAYE
£65,670
£5,472 per month net
- Total deductions
- £43,330
- Effective rate
- 37.7%
Working outside IR35 leaves you roughly £2,373 more a year — about £198 a month.
Outside IR35 — where it goes
Gross contract income£115,000
Business expensesAllowable costs paid by the company− £3,000
Employer's NI on salary− £1,136
Corporation taxIncludes marginal relief− £20,708
Dividend tax− £16,113
Pension contributionYours, held in your pension− £6,000
Net take-home£68,043
Inside IR35 — where it goes
Gross contract income£115,000
Employer's NIDeducted from the assignment rate− £13,503
Apprenticeship Levy− £475
Income tax (PAYE)− £25,441
Employee's NI− £3,911
Pension contributionYours, held in your pension− £6,000
Net take-home£65,670
Want to see if a dividend/salary split could improve this further?
The Dividend vs Salary Optimiser finds the most efficient mix for your company.
Assumptions for 2026/27
- Standard personal allowance, tapered above £100,000. No other income.
- No student loan repayments and no other reliefs or benefits in kind.
- Outside IR35: all post-tax profit is drawn as dividends; the Employment Allowance is not claimed (typical for a sole-director company).
- Inside IR35: employer's NI and the Apprenticeship Levy are deducted from the assignment rate, as most umbrella companies do. Umbrella margins are excluded.
- Pension contributions are made by the employer or by salary sacrifice.
- Estimates for planning only — not tax advice. Check with your accountant.