IR35 Calculator
Updated on 22 Oct 2026 · Checked by Aotob
At £500 a day for 220 days you take home £68,515 outside IR35, or £65,650 inside.
Outside IR35 keeps £2,865 more a year.
Outside IR35 take-home
£68,515
Outside IR35 you keep 4% more, mostly because dividends avoid National Insurance. Inside, the umbrella pays employer NI out of your rate, so the same day rate is worth much less.
Show the working
Inside: 110,000 − umbrella 1,040 − employer NI and levy = pay 94,987 → take-home 65,650
Outside: 110,000 − 3,000 − salary 12,570 − NI 1,136 = profit 93,295; − CT 20,973 = dividends 72,321; − tax 16,376 + salary = 68,515
By day rate
| Day rate | Inside | Outside | Difference |
|---|---|---|---|
| 300 | 43,555 | 47,703 | 4,148 |
| 400 | 54,602 | 58,126 | 3,524 |
| 500 | 65,650 | 68,515 | 2,865 |
| 600 | 73,891 | 78,772 | 4,881 |
| 750 | 87,368 | 91,339 | 3,972 |
| 1,000 | 112,606 | 115,857 | 3,252 |
Questions people ask
What is IR35?
Rules that decide whether a contractor is really an employee for tax. Inside IR35 you pay tax and NI like an employee; outside you can work through your own company.
Why does inside IR35 pay less?
Through an umbrella, employer NI (15%), the apprenticeship levy and the umbrella fee come out of your day rate before your own tax and NI.
How is outside IR35 taxed?
Your company pays corporation tax (19% to 25%) on profit; you take a small salary and the rest as dividends taxed at 10.75%, 35.75% or 39.35% from April 2026.
Updated 22 Oct 2026Source: GOV.UK: off-payroll working (IR35) and Corporation Tax ratesChecked by AotobEngland, Wales and NI rates for 2026-27; all profit paid out as dividends.Report an issue