IR35 & Contract Calculator
✓ Verified for 2026/27Contract Details
£
Gross Income
£115,000
annual revenue
Outside IR35 Net
£85,000
max efficiency
Umbrella Net
£70,000
standard PAYE Inside
IR35 Difference
£15,000
yearly loss inside
Outside IR35
Ltd Company Route£85,250
74.1% take-home
Low salary + dividendsInside IR35
Umbrella Route£70,120
61.0% take-home
PAYE withholding taxesDeemed Employment
Inside IR35 Route£71,450
62.1% take-home
With 5% expenses allowance
IR35 determines whether a contractor is a genuine business (outside IR35) or a disguised employee (inside IR35). Working outside IR35 is significantly more tax-efficient as you can take money out as dividends and manage corporation tax.
How We Calculated This
- Input variables: Enter the relevant amounts, rates, or percentages in the form.
- Real-time breakdown: The calculator applies HMRC rules and thresholds for the 2026/27 tax year to process the values.
- Display outputs: The visual graphs, donut charts, and tables are compiled dynamically to show your net take-home and deductions.
Real-World Examples
Standard Scenario
A basic calculation applying standard UK tax bands and allowances.
Calculation runs based on standard HMRC rules.
With Pension or Deductions
Factoring in a percentage of salary sacrifice or pension contributions.
Deductions are calculated and adjusted accordingly.
Frequently Asked Questions
Is this calculator updated for the 2026/27 tax year?
Yes, all calculators are fully updated with the latest HMRC thresholds, personal allowances, and National Insurance rates for 2026/27.
Can I use this for official tax submissions?
These tools are for estimation and illustrative purposes only. For official tax returns, please consult a qualified accountant or reference HMRC directly.
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About This Calculator
This calculator uses the latest HMRC rates for the 2026/27 tax year. For illustrative purposes only — always consult a qualified tax adviser for formal advice.