Contractor Take-Home Pay Calculator UK
Compare inside IR35, outside IR35 (Ltd), and PAYE equivalent. See the real difference.
Gross: £115,000/yr (£9,583/mo)
Outside IR35 (Ltd)
£71,177
£5,931/mo
36.0% effective tax
Inside IR35
£68,460
£5,705/mo
30.7% effective tax
PAYE Equivalent
£62,365
£5,197/mo
~£97,750 gross salary
Outside IR35 pays £2,717/year more than inside IR35
That's £226/month difference
Detailed Breakdown
What About Umbrella Companies?
An umbrella company employs you and handles PAYE, NI, and pension. Your take-home is similar to Inside IR35 but with additional umbrella fees (typically 3-5% or a flat £20-30/week). Choose umbrella when your client requires it or when you want zero admin overhead.
Typical umbrella take-home = Inside IR35 take-home minus £1,000-2,000/year in fees.
Contractor Tax Comparison UK 2025/26
Outside IR35 (Ltd Company): You pay yourself a small salary (£12,570) and take the rest as dividends. Corporation tax at 19-25%, then dividend tax at 8.75-33.75%. Most tax-efficient option.
Inside IR35: Your client deducts tax and NI at source, similar to PAYE. You get a 5% expense allowance but lose the dividend tax advantages.
PAYE Equivalent: What you'd earn as a permanent employee. Estimated at 85% of contractor gross (accounting for agency/employer costs, holidays, pension, benefits).