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Free calculator · 2026/27 tax year

Umbrella or limited company: what's the difference in your pocket?

Compare your take-home pay working through an umbrella company (inside IR35) against working through your own limited company outside IR35, at the same day rate. Adjust the figures below and the results update instantly.

Already working through your own company and weighing up a determination? Use the inside vs outside IR35 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 IR35Umbrella company

Inside
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 (umbrella)— 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.
  • 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.
  • Umbrella: the minimum employer pension contribution (3%) is included in take-home pay as its own line item — it is paid into your pension pot rather than your bank account.
  • Any pension contribution entered is paid before tax — as a company contribution through your limited company, or by salary sacrifice via the umbrella — 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.

Working through your own limited company and weighing up an inside-IR35 determination? Try our inside vs outside IR35 calculator.

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