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UK IR35 Take-Home Calculator (2026/27)
Side-by-side comparison of Inside IR35 (Umbrella) vs Outside IR35 (Limited Company) net income.
Inside IR35 (Umbrella)
Outside IR35 (Limited Company)
2026/27 IR35 Tax & NI Reference Rates
| Tax / NI Element | Inside IR35 Rate | Outside IR35 Rate |
|---|---|---|
| Employer NI Threshold & Rate | 15% above £5,000 secondary threshold | 15% above £5,000 on director salary |
| Income Tax / Salary Tax | 20% / 40% / 45% (PA £12,570) | 20% / 40% / 45% on director salary |
| Employee NI | 8% (£12,570-£50,270), 2% above | 0% on £12,570 optimal salary |
| Corporation Tax | N/A (Umbrella employment) | 19% (≤£50k) to 25% (≥£250k) + Marginal Relief |
| Dividend Tax | N/A | 10.75% basic / 35.75% higher / 39.35% additional (£500 allowance) |
Frequently Asked Questions
What is the difference between Inside IR35 and Outside IR35?
Inside IR35 means you are treated as an employee for tax purposes, with Income Tax and National Insurance deducted at source. Outside IR35 means you operate as a genuine independent business, paying corporate taxes and taking income as a salary and dividend split.
How does Employer NI affect Inside IR35 umbrella take-home pay?
Under an Inside IR35 umbrella arrangement, the umbrella company must pay 15% Employer National Insurance on earnings above the £5,000 secondary threshold from the contract gross fee before calculating employee salary, tax, and employee NI.
What are the 2026/27 dividend tax rates for Outside IR35 contractors?
From 6 April 2026, dividend tax rates are 10.75% for the basic rate, 35.75% for the higher rate, and 39.35% for the additional rate. The annual tax-free dividend allowance remains £500.
Can Outside IR35 contractors deduct business expenses?
Yes. Legitimate business expenses (such as accountancy fees, equipment, travel, and professional subscriptions) can be deducted from contract revenue before Corporation Tax is calculated.
Can a calculator determine my legal IR35 status?
No calculator can legally determine whether a contract falls inside or outside IR35. IR35 status depends on actual working practices, contractual terms, control, substitution, and mutuality of obligation. Consult Apex Accountants for a formal IR35 contract review.
Related Services & Calculators
Important information about these calculators
Purpose. These free calculators are provided by Apex Accountants & Tax Advisors LTD to give an indication of common UK tax and accounting figures. They are designed to help you understand the general position before taking professional advice.
Not advice. The results are indicative estimates only. Nothing produced by these tools constitutes tax, accountancy, auditing, financial or legal advice, and using them does not create a client relationship with Apex Accountants. No tool on this website should be used as a substitute for a formal review of your circumstances by a qualified adviser.
Assumptions and accuracy. Each calculator applies published HMRC rates and thresholds for the 2026/27 tax year (last verified September 2026) together with the simplifying assumptions listed on the tool itself. Your actual liability depends on factors a calculator cannot see — other income, pension contributions, residency, marriage allowance, associated companies, changes announced after the verification date and more. Where a result matters to you, check it against the current published rates on GOV.UK or ask us to check it with you.
Do not rely. Please do not make financial, tax or business decisions based solely on the output of these tools. If a figure on this page would affect a decision you are making, book a free consultation with one of our chartered accountants (ACCA/ICAEW) first.
Rates change. Tax rates, thresholds and reliefs change with Budgets and Finance Acts, sometimes retrospectively. We review the calculators regularly but they may briefly lag a change announced by HMRC.
Comparison and IR35 tools. The IR35, limited company vs sole trader, salary and dividend and similar comparison tools are illustrative only. In particular, no calculator can determine whether you are inside or outside IR35 — that status depends on your contracts and actual working practices and is ultimately a matter for HMRC and the courts. The figures shown for each scenario use the assumptions stated on the tool and are not a prediction of your own take-home pay.
Liability. To the fullest extent permitted by law, Apex Accountants & Tax Advisors LTD accepts no liability for any loss or damage arising from the use of, or reliance on, these calculators or their results. This does not affect your statutory rights. Use of these tools is subject to our website Terms & Conditions.
© Apex Accountants & Tax Advisors LTD. Figures checked by our ACCA/ICAEW chartered accountants. Last reviewed September 2026.