IR35 Calculator
Compare your take-home pay inside IR35 (treated as an employee for tax) versus outside IR35 (working through your own limited company). See exactly how much IR35 status affects your income.
Inside IR35
£70,457.40
Annual take-home (PAYE)
Outside IR35 (Ltd)
£67,171.38
Annual take-home (salary + dividends)
Detailed Comparison
| Inside IR35 | Outside IR35 | |
|---|---|---|
| Gross revenue | £110,000.00 | £110,000.00 |
| Expenses | -£5,000.00 | -£5,000.00 |
| Salary | - | £12,570.00 |
| Corporation tax | - | £24,493.95 |
| Income tax | £30,432.00 | - |
| Employee NI | £4,110.60 | - |
| Dividend tax | - | £13,334.67 |
| Take-home pay | £70,457.40 | £67,171.38 |
What is IR35?
IR35 is tax legislation that determines whether a contractor is a "disguised employee." If you are inside IR35, you pay income tax and NI as if you were an employee, even though you work through a limited company.
Outside IR35, you can pay yourself a small salary (usually at the personal allowance level) and take the rest as dividends, which are taxed at lower rates. The difference can be significant -- often £10,000-£30,000 per year.
Since April 2021, the end client (for medium/large businesses) determines your IR35 status in the private sector. The outside IR35 figures assume you pay yourself a salary at the personal allowance and take remaining profits as dividends.
Last updated: May 2026. Uses 2025/26 tax rates and thresholds.
Built by The NexoraOS Team