IR35 Takehome Pay Calculator
Working out how much you’ll take home, whether inside or outside IR35, can be confusing. Our free IR35 calculator gives contractors a quick estimate of their net pay based on their contract status.
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Calculate Your Takehome
Whether you’re weighing up a new role or deciding between limited company and umbrella, this tool helps you see the difference in your pocket.
Why IR35 Status Matters
Our services are designed to help professionals choose with confidence, from comparing providers to understanding IR35 and take-home pay.
Outside Ir35
You’re paid through your limited company, with more flexibility over salary, dividends, and expenses. This usually means higher take-home pay.
Inside IR35
Your income is treated as employment income. You’ll pay full PAYE tax and National Insurance, and most contractors choose an umbrella company to handle this.
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Real feedback from people like you. Read how other contractors found peace of mind and better pay with the right umbrella setup.
Frequently Asked Questions About IR35
Got questions about umbrella companies, IR35 or how contractor payroll works?
What is IR35 and why does it affect contractors?
IR35 is a set of tax rules introduced by HMRC to stop “disguised employment” where contractors work like employees but pay themselves more tax-efficiently through a limited company.
If you’re outside IR35, you can operate as a genuine business, pay yourself through salary and dividends, and claim allowable expenses.
If you’re inside IR35, HMRC sees you as an employee for tax purposes, meaning you pay full PAYE tax and National Insurance on your earnings.
This difference can have a big impact on your take-home pay, which is why using an IR35 calculator is so useful.
Does the IR35 calculator decide if I’m inside or outside IR35?
No. The calculator shows you the financial impact after your IR35 status has been determined. To check your actual status, you can:
Seek advice from a specialist contractor accountant or legal expert.
How accurate are the results from the IR35 calculator?
The calculator gives you a good estimate of take-home pay using current UK tax rates, NIC thresholds. However, your final pay may differ depending on:
Your tax code (e.g. if you have multiple income sources).
Pension contributions.
Student loan repayments.
Benefits in kind or expenses your contract allows.
Think of it as a guide, not a substitute for tailored financial advice.
What deductions are included when calculating inside IR35 pay?
When you’re inside IR35 (usually via an umbrella company), your pay typically includes the following deductions:
Employer National Insurance – paid from the contract rate.
Employee National Insurance – deducted from your gross salary.
Income tax (PAYE) – based on UK tax bands.
Umbrella company margin – a weekly or monthly admin fee.
The calculator factors in all of these to show a realistic take-home figure.
What deductions are included outside IR35?
Outside IR35, you’re running a limited company and have more flexibility. Your pay usually includes:
A small salary (often up to the NIC threshold).
Dividends from company profits (after corporation tax).
Business expenses (software, travel, equipment, training) deducted before tax.
This is why outside IR35 usually results in higher take-home pay.
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Real feedback from people like you. Read how other contractors found peace of mind and better pay with the right umbrella setup.
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