Tax Intelligence
IR35 Calculator
Compare your take-home pay outside IR35 (Ltd company) vs inside IR35 (deemed employment) vs permanent employment. See the real financial impact of your IR35 status determination.
Contract Details
220 is typical (52 weeks minus 6 weeks holiday/bank holidays)
Ltd Company
£12,570 (personal allowance) is tax-optimal for most Ltd directors
Permanent Comparison
Typically 60-65% of contract value (£66,000 – £71,500)
How This Works
Outside IR35 (Ltd Company): You pay yourself a small salary (typically £12,570 — the personal allowance), then take remaining profits as dividends after corporation tax. Dividends are taxed at lower rates than employment income.
Inside IR35 (Deemed Employment): Your income is treated as employment income with a 5% expense allowance (capped at £5,000). PAYE income tax, employee NI, and employer NI are deducted from the "deemed payment".
Permanent Employment: Standard PAYE employment. No dividend planning or business expense deductions, but includes benefits like holiday pay, sick pay, and pension contributions.
Based on 2025/26 tax year rates. For informational purposes only — consult a qualified accountant or IR35 specialist for personalised advice.
Your Ltd company saves £6,671/year vs inside IR35
Outside IR35
£70,564
£5,880/month
35.9% effective rate (of revenue)
Inside IR35
£63,892
£5,324/month
41.9% effective rate (of revenue)
| Outside IR35 | Inside IR35 | |
|---|---|---|
| Gross Revenue | £110,000 | £110,000 |
| Employer NI | −£1,136 | −£13,043 |
| Corporation Tax | −£21,238 | — |
| Business Costs | −£2,000 | −£5,000 |
| Income Tax | — | −£24,215 |
| Employee NI | — | −£3,850 |
| Dividend Tax | −£15,063 | — |
| Net Take Home | £70,564 | £63,892 |
| Effective Rate | 35.9% (of revenue) | 41.9% (of revenue) |
Outside IR35 saves £6,671 per year (£556/month)