Enter your day rate once and see your take-home both inside and outside IR35 side by side — so you know precisely what your contract status is worth before you sign.
Same rate, both outcomes
IR35, the off-payroll working rules, decides whether a contractor working through their own company is genuinely self-employed (outside IR35) or a "disguised employee" (inside IR35). The distinction turns on the reality of the working relationship — control, substitution and mutuality of obligation — not on what the contract says on paper.
| Outside IR35 | Inside IR35 | |
|---|---|---|
| Pay structure | Salary + dividends | PAYE deemed salary |
| National Insurance | Minimal | Employee + employer |
| Expenses | Allowable | Very limited |
| Take-home | Higher | Lower |
Inside IR35, take-home is similar to working through an umbrella company, and the limited-company advantage largely disappears. Outside IR35, model the most tax-efficient split with the dividend vs salary calculator and the full picture on the contractor take-home calculator.
Typically 15–25% less take-home than outside IR35 on the same rate, because inside IR35 is taxed almost like employment.
HMRC treats you as a deemed employee for that contract, so income is taxed via PAYE and NI rather than as dividends.
For medium/large and public-sector clients, the end client decides. For small private clients you assess yourself. HMRC's CEST tool is the starting point.
Only very limited expenses — most are disallowed, which is part of why inside-IR35 take-home is lower.
