IR35 Calculator 2026/27
Inside or outside IR35 — what does it cost you? Enter your day rate and days to see both positions side by side: limited company with salary and dividends, against deemed employment taxed like a payslip.
- Rates: GOV.UK — checked 5 Nov 2026
- Tested against HMRC worked examples
- Your salary never leaves your browser
Company pension contribution outside IR35; employee pension inside IR35. Leave at 0 to compare the headline positions.
This is an estimate from headline figures. IR35 status is fact-specific and this tool does not determine your status. No status-determination claim is made anywhere on this page.
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Outside IR35 — limited company
— / year
| Contract value | — |
|---|---|
| Salary (personal allowance) | — |
| Employer NI on salary | — |
| Company pension | — |
| Company profit | — |
| Corporation tax | — |
| Dividends | — |
| Dividend tax | — |
| Take-home (outside) | — |
| Deemed gross pay | — |
|---|---|
| Employer NI | — |
| Income tax | — |
| Employee NI | — |
| Pension | — |
| Take-home (inside) | — |
Inside IR35 — your deemed gross pay, split.
Rates checked 5 November 2026.
Every figure checked against HMRC's own examples.
Your salary never leaves your browser.
Rates re-checked by hand after every Budget.
Rates: GOV.UK — last checked 5 November 2026 See the official rates
This is an estimate from headline figures. IR35 status is fact-specific and this tool does not determine your status.
How this is calculated
Outside IR35 (limited company): salary at the £12,570 personal allowance — no income tax and no employee National Insurance on it, employer National Insurance of 15% on the slice above the £5,000 secondary threshold — then any company pension contribution, corporation tax on the remaining profit (19% up to £50,000, 25% above £250,000, marginal relief of 3/200 between the two), and the rest taken as dividends. Dividend tax uses the £500 allowance at 0%, then 10.75% in the basic-rate band, 35.75% in the higher-rate band and 39.35% above. Inside IR35 (deemed employment): the contract value runs through the same waterfall as the umbrella calculator (employer National Insurance first, no margin, no levy) to a deemed gross, then through the normal engine as an employee payslip. Figures use the 2026/27 rates, last checked against GOV.UK on 5 November 2026. See the full method on How we calculate.
This is an estimate from headline figures. IR35 status is fact-specific and this tool does not determine your status.
Example — £500 a day × 220 days (£110,000 contract, no pension)
| Outside IR35 | Inside IR35 | |
|---|---|---|
| Gross / deemed gross | £12,570.00 salary | £96,304.35 |
| Corporation tax | £21,768.04 | — |
| Dividends (after dividend tax £17,039.46) | £57,487.00 | — |
| Income tax + employee NI | — | £29,890.43 |
| Take-home pay | £70,057.00 | £66,413.92 |
Outside IR35 nets £3,643.08 more on this contract. The gap comes mostly from dividends being taxed at 10.75%/35.75% instead of income tax at 20%/40% plus employee National Insurance — partly offset by corporation tax and the employer National Insurance that both routes pay in different places.
Related calculators & reading
- IR35 in plain English: inside vs outside, with numbers — the full explainer behind this tool.
- Umbrella company calculator — the deduction waterfall, line by line.
- Self-employed tax calculator — the sole-trader route, with payments on account.
- UK tax rates 2026/27 — every band, threshold and allowance behind these figures.
Questions
What does inside IR35 actually mean for my pay?
Inside IR35 means you are taxed like an employee: the contract value loses employer National Insurance first, then income tax, employee National Insurance and student loan come off the deemed gross pay. You cannot take the rest as dividends. Outside IR35 you can — salary up to the personal allowance, corporation tax on the company profit, then dividends at the dividend rates.
How big is the difference?
On a £110,000 contract (£500 a day × 220 days) the outside-IR35 route nets about £70,057.00 a year and the inside route about £66,413.92 — a gap of roughly £3,643.08. The gap shrinks at lower contract values and grows with the dividend rates; enter your own day rate above for the exact comparison.
Can this tool tell me whether I am inside or outside IR35?
No — and no calculator can. IR35 status depends on the facts of how you actually work: control, substitution, mutuality of obligation and the contract terms. This tool only compares the tax outcome of the two positions. If your status is unclear, get a proper status review or advice.
Why did the dividend rates change?
From 6 April 2026 the basic dividend rate rose from 8.75% to 10.75% and the higher rate from 33.75% to 35.75%; the additional rate is unchanged at 39.35%. The £500 dividend allowance is unchanged. Older articles quoting 8.75% and 33.75% are out of date for 2026/27.
Is my information sent anywhere?
No. The calculator runs entirely in your browser. Nothing you enter is sent to a server, stored, or shared.
The rates behind this calculator: 2026/27 rates, sourced from GOV.UK.