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UK IR35 Take Home Calculator

Compares the take home pay of a contractor inside IR35 on PAYE with the same contract worked outside IR35 through a limited company.

Enter your numbers

Day rate (GBP)

Example: 500

Billable days

Example: 220

Annual expenses (GBP)

Example: 5000

Inside IR35 effective tax (%)

Example: 30

Outside IR35 effective tax (%)

Example: 22

Result

Currency

Figures are computed on your device; nothing is sent anywhere.

Formula

contractValue = dayRate * days; insideNet = (contractValue - expenses) * (1 - insideTaxPct / 100); outsideNet = (contractValue - expenses) * (1 - outsideTaxPct / 100); difference = insideNet - outsideNet

How the calculation works

The contract value is the day rate multiplied by the number of days worked in the year.

Inside IR35 the income is taxed like employment at the higher rate, while outside IR35 the same income benefits from the lower dividend rate.

With a 500 pound day rate over 220 days and 5,000 pounds of expenses the inside figure is about 73,500 pounds against 81,900 pounds outside.

Common mistakes

Treating the difference as pure profit ignores accountancy fees and company running costs that only apply outside IR35.
Judging IR35 status by the contract wording alone is risky, because the working practices matter as much as the written terms.

When to use it

Use it before accepting a contract to see how much the IR35 status actually costs or saves you.
Use it to compare two agencies or clients where one insists on inside IR35 and the other allows outside status.

Worked example

A 500 pound day rate over 220 days with 5,000 pounds of expenses gives about 73,500 pounds inside IR35 and 81,900 pounds outside, a gap of 8,400 pounds.

Net inside IR35 73,500.00

Net outside IR35 81,900.00

Difference ৳8,400.00

Common questions

Does the outside IR35 figure include company costs?

No. The outside figure is the income after the dividend tax share, so accountancy fees, insurance and other limited company costs must be subtracted separately.

Last updated: 2026-10-03