Contractor / IR35 Calculator
Calculate contractor take-home inside and outside IR35
Contractor / IR35 Calculator
Calculate take-home for contractors
46 weeks = 6 weeks unpaid leave
Accountant, insurance, equipment, etc.
Outside IR35 Breakdown
Optimal: up to Personal Allowance
On company profits
After corporation tax
8.75% basic rate (after £500 allowance)
How to Use This Calculator
- Enter your daily contract rate
- Enter how many days per week you work
- Enter weeks per year (account for holidays and time between contracts)
- Select your IR35 status
- Enter annual business expenses (accountant, insurance, etc.)
- See your take-home after all taxes and expenses
Frequently Asked Questions
What is IR35?
IR35 determines if you're genuinely self-employed or a "disguised employee". Inside IR35 means you pay tax like an employee. Outside means you can use tax-efficient company structures. See our IR35 Guide for details.
How is IR35 status determined?
Based on control (who decides how work is done), substitution (can you send someone else), and mutuality of obligation (is there ongoing work obligation). Since 2021, medium/large clients determine status for their contractors.
What's the difference in take-home?
Outside IR35 is typically 15-25% more tax-efficient due to lower corporation tax vs Income Tax/NI, dividend allowances, and expense deductions. However, it requires genuine self-employment status.
What expenses can I claim?
Outside IR35: accountant, professional insurance, equipment, travel, training. Inside IR35: very limited - mostly just professional fees. Keep receipts and ensure expenses are wholly and exclusively for business.
What day rate equals a £50k salary?
Roughly £300-350/day outside IR35, £250-300/day inside IR35 (for 46 working weeks). Contractors charge more for no pension, holiday pay, sick pay, or job security. Use our Salary to Hourly calculator.
Should I operate through a limited company or umbrella?
Outside IR35: Limited company is more tax-efficient. Inside IR35: Umbrella company is simpler (they handle PAYE). Limited company has setup costs (£150-2000/year for accountant) but better for long-term contracting.