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Free calculator · 2026/27 tax year

Inside or outside IR35: what's the difference to your take-home?

If you work through your own limited company, compare your take-home pay when an engagement is outside IR35 against the same engagement determined inside IR35. By default we use one day rate for both, the position you face if a contract is reassessed. If your inside and outside rates differ, you can enter both.

Looking to compare an umbrella company instead? Use the umbrella vs limited company calculator

The bottom line

Estimated difference in annual take-home pay

Enter your details to compare the two positions.

£— ≈ £— per day worked

Outside IR35Your own limited company

Outside
Take-home pay£—
£— / month£— / week

Inside IR35Your own limited company

Inside

Your company still invoices and receives the money, but it arrives with income tax and employee NI already deducted, and can be paid out to you with no further tax.

Take-home pay£—
£— / month£— / week

Where each £100 of your contract value goes

Every pound of contract income, split between you, HMRC and running costs.

Outside IR35— kept
Inside IR35 (own company)— kept
You keep Income tax National Insurance Corporation tax Pension Fees & costs
Assumptions behind these figures
  • You're not a Scottish taxpayer (different income tax bands apply in Scotland).
  • You have no other income outside this engagement and work the full tax year.
  • Outside IR35: you take a salary of £12,570 and draw all remaining profit as dividends.
  • Inside IR35: these figures assume your end client is medium or large, so the fee payer deducts income tax and employee NI under the off-payroll working rules before paying your company, and bears any employer NI and apprenticeship levy on top of the rate entered. If your end client is a small company or wholly overseas, your company self-assesses under the original IR35 rules instead and the figures will differ.
  • Inside IR35: money received this way can be drawn from your company without further tax (no corporation tax or dividend tax applies to it).
  • Inside IR35: ongoing company costs are assumed to continue (accountancy and expenses are deducted from take-home).
  • The limited company route assumes you withdraw all the money from the company each year. This is often not the most tax-efficient strategy; with Mighty, your accountant would provide bespoke tax planning tailored to your ambitions and circumstances.
  • All business expenses entered are allowable for tax.
  • Any pension contribution entered is paid before tax — as a company contribution when outside IR35, or deducted from the deemed payment when inside — and is counted in take-home pay as money into your pension pot.
  • The Employment Allowance and student loan repayments are not included.
  • All figures use 2026/27 tax rates and thresholds.

This calculator gives an illustration only and is not financial or tax advice. Figures use 2026/27 rates and thresholds. Speak to us or another qualified professional about your own personal circumstances before making decisions based on these numbers.

Comparing umbrella employment against your own limited company instead? Try our umbrella vs limited company calculator.

Talk to an accountant

Want bespoke advice?

The numbers are a starting point; your real position depends on the detail. Our accountants help contractors get their IR35 status right and keep more of what they earn.

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