UK contractor estimate · 2026/27 tax year

IR35 Calculator 2026/27: Inside vs Outside IR35 Take-Home Pay

Compare an inside IR35 umbrella-style estimate with an outside IR35 limited company estimate. This page explains the numbers and assumptions, but it does not decide your IR35 status.

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Use paid weeks actually worked.
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Default uses a common simple estimate.
This page does not decide whether a contract is inside or outside IR35. It only compares the estimated take-home pay after you choose a scenario.

Inside IR35

Umbrella-style payroll estimate

Gross contract value£0
Umbrella fees-£0
Employer NI-£0
Taxable gross salary£0
Income tax-£0
Employee NI-£0
Net take-home£0
This side assumes the contract is treated as employment for tax, with employer NI and umbrella costs coming out of the contract value before net pay is calculated.

Outside IR35

Limited company estimate

Company revenue£0
Allowable expenses-£0
Director salary+£0
Profit before Corporation Tax£0
Corporation Tax-£0
Dividends available+£0
Dividend tax-£0
Net take-home£0
This side is a simplified director-salary-plus-dividends estimate. It does not include VAT, accountant fees, pension strategy, associated companies, or bespoke tax planning.

How the IR35 estimate works

Inside IR35

The inside IR35 side assumes an umbrella-style payroll flow. Umbrella fees are removed first. Employer National Insurance is then treated as a contract cost, and the remaining taxable salary is used to estimate PAYE income tax and employee National Insurance.

Outside IR35

The outside IR35 side assumes you operate through your own limited company, pay a director salary, deduct allowable business expenses, then pay Corporation Tax and take the remaining post-tax profit as dividends. The page then estimates dividend tax on top of the salary.

What this page does not do

  • It does not determine employment status.
  • It does not replace a Status Determination Statement or professional advice.
  • It does not cover Scottish income tax, VAT, pension planning, or every umbrella charging model.

Frequently asked questions

Does this calculator tell me whether my contract is inside IR35?

No. It compares pay outcomes after you choose a scenario. IR35 status depends on the facts of the contract and working practices.

Why is the inside IR35 number usually much lower?

Because the estimate includes employer NI as a cost of the contract, then still applies employee PAYE tax and employee NI to the deemed salary. Umbrella fees also reduce the result.

Why is Scotland not included in this version?

Scottish income tax bands are different from the rest of the UK for employment income. This page avoids mixing those rates into a simplified contractor estimate.