Inside vs outside IR35 calculator
A take home pay calculator inside IR35 and outside it, in one: enter a day rate and see take-home three ways, with every deduction shown, at 2026/27 rates. Inside IR35 vs outside IR35, and outside IR35 vs inside IR35, are the same comparison read from either end.
Updated 13 September 2026 · Tax year 2026/27
Inside IR35 take home calculator results #
| Outside IR35 | Inside IR35 | Umbrella | |
|---|---|---|---|
| Take home a year | £68,515.29 | £66,172.12 | £65,519.30 |
| A month | £5,709.61 | £5,514.34 | £5,459.94 |
| Total tax and NI | £38,484.71 | £43,827.89 | £43,180.70 |
| Kept from £110,000.00 | 62.3% | 60.2% | 59.6% |
The working, outside IR35 #
Your company invoices £110,000.00, pays you a small salary, pays Corporation Tax on what is left, and the remainder comes out as dividends.
| Invoiced | £110,000.00 |
| Less company expenses | − £3,000.00 |
| Less director salary | − £12,570.00 |
| Less employer NI on that salary | − £1,135.50 |
| Taxable profit | £93,294.50 |
| Less Corporation Tax | − £20,973.04 |
| Dividend available | £72,321.46 |
| Less Income Tax on salary | − £0.00 |
| Less employee NI on salary | − £0.00 |
| Less dividend tax | − £16,376.17 |
| Take home | £68,515.29 |
The working, inside IR35 #
Because the rate is an assignment rate, employer National Insurance and the apprenticeship levy come out of it before your gross pay is worked out. This is the setting that costs contractors the most and is the least often explained.
| Assignment rate | £110,000.00 |
| Less employer NI | − £13,633.12 |
| Less apprenticeship levy | − £479.44 |
| Gross pay | £95,887.45 |
| Less Income Tax | − £25,786.98 |
| Less employee NI | − £3,928.35 |
| Take home | £66,172.12 |
Reconciliation: gross pay £95,887.45 plus employer NI £13,633.12 plus levy £479.44 equals the £110,000.00 assignment rate.
The working, umbrella company #
An umbrella employs you and pays you through PAYE. The same employer costs come out of the assignment rate, and the umbrella's margin comes out on top of them.
| Assignment rate | £110,000.00 |
| Less umbrella margin (£25.00 a week) | − £1,300.00 |
| Less employer NI | − £13,464.29 |
| Less apprenticeship levy | − £473.81 |
| Gross pay | £94,761.90 |
| Less Income Tax | − £25,336.76 |
| Less employee NI | − £3,905.84 |
| Take home | £65,519.30 |
Holiday pay is not an extra deduction. An umbrella either rolls it into the rate or holds it back and pays it later, but either way it comes out of the same pot, so it does not change the annual total.
Using it as a day rate or salary calculator #
The same figures answer several questions. As a take home pay calculator day rate contractors can use, or an IR35 inside calculator, or an inside IR35 day rate calculator, change the rate and watch the take-home move. As an IR35 salary calculator, change the director salary and see how the outside IR35 column responds. As an outside IR35 take home calculator or an outside IR35 tax calculator, read the first column and its working.
Whether you are asking inside IR35 or outside IR35, the arithmetic is symmetrical: the question is only ever which column applies to you.
Comparing an inside rate with an outside rate #
The single most useful thing this calculator does is show what uplift an inside IR35 rate needs to match an outside one. Run your outside rate first, note the take-home, then raise the inside rate until it matches.
What this does not do #
It does not decide your status. Whether an engagement is inside or outside IR35 depends on control, substitution and mutuality of obligation, not on arithmetic. HMRC's CEST tool gives a determination, and the IR35 guide explains the tests, who makes the decision and what a Status Determination Statement has to say.
Two related tools, if the question is broader than one contract: the salary vs dividend calculator finds the optimal split outside IR35, and sole trader vs limited company asks whether the company is worth keeping at all.
Common questions #
How much less do you take home inside IR35?
Less than most people assume. At £500 a day over 220 days, outside IR35 leaves £68,515 against £66,172 inside, a difference of £2,343. The April 2026 dividend rise narrowed this gap considerably.
What is the difference between inside IR35 and outside IR35?
Inside IR35 means the engagement is taxed as employment: Income Tax and National Insurance come off before you see the money. Outside IR35 means your company is paid gross and you decide how to take it out, through salary and dividends.
Does an inside IR35 rate include employer National Insurance?
It depends on the contract, and it is worth thousands. Legally the fee-payer owes employer NI and cannot deduct it from your deemed payment, but rates are commonly reduced to absorb it. Always ask whether a quoted rate is an assignment rate or your gross pay.
Is an umbrella company worse than inside IR35?
Slightly, because the umbrella margin comes out of the rate on top of the employer costs. On these figures the umbrella leaves £65,519 against £66,172 inside IR35 through your own company.
What is the apprenticeship levy on an umbrella payslip?
A 0.5% charge on the employer's paybill. Umbrella companies are large enough to pay it and pass it on, so it appears as a deduction from the assignment rate before your gross pay is worked out.
What salary should I take outside IR35?
Most single-director companies take a salary at the personal allowance, currently £12,570, and the rest as dividends. The salary vs dividend calculator tests every level if you want the exact optimum.
Can I use this instead of CEST?
No. This works out what each outcome pays, not which one applies to you. HMRC's CEST tool determines status; this calculator tells you what that determination is worth.