Inside IR35 vs Outside IR35 Calculator
Use this calculator to compare your take-home pay, pension contributions and tax liabilities under both Inside IR35 and Outside IR35 scenarios.
Day Rate
£per dayWorking Days/Year
days per yearPension Contribution
Inside IR35 (Umbrella)
Umbrella Margin/Week
£per weekUmbrella Fees/Week
£per weekBreakdown
| Gross Income | £110,000 |
| Less: Umbrella Margin | -£1,100 |
| Less: Umbrella Fees | -£264 |
| After Margin & Fees | £108,636 |
| Less: Pension (15%) - Salary Sacrifice | -£16,295 |
| After Salary Sacrifice | £92,341 |
| Less: Employer NI (15%) | -£11,392 |
| Less: Apprenticeship Levy (0.5%) | -£462 |
| Taxable Income | £80,487 |
| Less: Income Tax | -£19,627 |
| Less: Employee NI | -£3,620 |
| Net Take-Home | £57,240 |
Annual Take-Home
£57,240
Monthly: £4,770
Added to Pension: £16,295
Annual Allowance: £60,000
Total: £73,535
HMRC Collected:
£35,101
Outside IR35 (Limited Co.)
Annual Salary
£per yearAnnual Expenses
£per yearTake Out as Dividends
Breakdown
| Base Revenue (ex-VAT) | £110,000 |
| VAT Threshold Hit? | Yes (over £90,000) |
| Plus: VAT Added to Invoices (20%) | +£22,000 |
| Total Turnover (inc. VAT) | £132,000 |
| Less: VAT Paid to HMRC (16.5% of turnover) | -£21,780 |
| Net Company Revenue | £110,220 |
| Less: SIPP Contribution (15%) | -£16,533 |
| Less: Salary | -£12,570 |
| Less: Employer NI on Salary | -£1,135 |
| Less: Business Expenses | -£2,000 |
| Profit Before Corp Tax | £77,982 |
| Less: Corporation Tax (19%) | -£14,816 |
| Available for Dividends | £63,165 |
| Dividends Taken (100%) | £63,165 |
| Less: Dividend Tax | -£14,867 |
| Less: Personal Tax on Salary | -£0 |
| Net Take-Home | £60,868 |
| Retained in Company | £0 |
Annual Take-Home
£60,868
Monthly: £5,072
Added to Pension: £16,533
Annual Allowance: £60,000
Total: £77,401 (+ £0 retained in company)
HMRC Collected:
£30,819
Key assumptions made:
- Pension contributions are on a salary sacrifice basis
- No consideration of sick pay or holidays
- For umbrella companies, the apprenticeship levy (0.5% of payroll) is applied, as most umbrella companies exceed the £3 million annual payroll threshold
- For limited companies with revenue over the £90,000 threshold, VAT is added to invoices at 20%, and the Flat Rate VAT scheme applies at 16.5% of total turnover (limited cost business rate). VAT is not included in 'HMRC Collected' because it is a pass-through tax.
Rate Comparisons
| Day Rate | Umbrella Gross Income | Umbrella Take-Home | Umbrella Pension | Limited Gross Income | Limited Take-Home | Limited Pension | Take-Home Difference | Total Difference |
|---|---|---|---|---|---|---|---|---|
| £200 | £44,000 | £26,080 | £5,529 | £30,143 | £28,649 | £6,600 | +£2,569 | +£3,639 |
| £300 | £66,000 | £37,721 | £8,382 | £45,290 | £40,698 | £9,900 | +£2,977 | +£4,495 |
| £400 | £88,000 | £47,485 | £11,235 | £60,437 | £50,733 | £13,200 | +£3,248 | +£5,213 |
| £500 * | £110,000 | £56,862 | £14,088 | £75,735 | £60,868 | £16,533 | +£4,006 | +£6,451 |
| £600 | £132,000 | £66,239 | £16,942 | £90,912 | £70,923 | £19,840 | +£4,684 | +£7,582 |
| £700 | £154,000 | £73,182 | £19,795 | £106,090 | £80,978 | £23,146 | +£7,796 | +£11,148 |
| £800 | £176,000 | £79,805 | £22,648 | £121,267 | £91,033 | £26,453 | +£11,228 | +£15,033 |
| £900 | £198,000 | £88,374 | £25,501 | £136,444 | £100,483 | £29,759 | +£12,109 | +£16,368 |
| £1000 | £220,000 | £96,942 | £28,354 | £151,621 | £109,688 | £33,066 | +£12,746 | +£17,458 |
| £1100 | £242,000 | £105,511 | £31,207 | £166,799 | £118,894 | £36,373 | +£13,383 | +£18,548 |
| £1200 | £264,000 | £114,080 | £34,060 | £181,976 | £128,099 | £39,679 | +£14,019 | +£19,638 |
| £1300 | £286,000 | £122,649 | £36,913 | £197,153 | £137,304 | £42,986 | +£14,656 | +£20,729 |
| £1400 | £308,000 | £131,995 | £38,298 📉 | £212,331 | £146,510 | £46,292 | +£14,514 | +£22,509 |
| £1500 | £330,000 | £145,436 | £31,958 📉 | £227,508 | £155,715 | £49,599 | +£10,279 | +£27,920 |
| £1600 | £352,000 | £158,877 | £25,618 📉 | £250,601 | £169,722 | £43,133 📉 | +£10,844 | +£28,359 |
| £1700 | £374,000 | £172,319 | £19,277 📉 | £275,061 | £184,557 | £34,980 📉 | +£12,238 | +£27,941 |
| £1800 | £396,000 | £185,760 | £12,937 📉 | £299,520 | £199,392 | £26,827 📉 | +£13,632 | +£27,522 |
| £1900 | £418,000 | £197,397 | £10,000 📉 | £323,980 | £214,227 | £18,674 📉 | +£16,830 | +£25,504 |
| £2000 | £440,000 | £207,478 | £10,000 📉 | £348,440 | £229,063 | £10,520 📉 | +£21,585 | +£22,105 |