IR35 Inside vs Outside Calculator 2026/2027

Tax Year:

Tax Code:

Day rate £:

Working days / year:

Agency margin £/week:

Outside business expenses £/year:

Outside director salary £/year:

Client is a small private-sector company (5% expense allowance applies for Inside)

Inside = deemed-employment payment via PAYE. Same algebra as Umbrella: contract minus agency margin (and 5% allowance if small-client), then employer NI + Apprenticeship Levy stripped before a PAYE salary is derived.
Outside = your own Limited Co. Revenue minus expenses → corp tax → distributable profit → salary + dividends. Outside drains all distributable as dividends so the comparison is apples-to-apples.
5% expense allowance only survives in the small-client exemption (off-payroll rules don't apply when the end-client is a small private-sector company).

IR35 Inside vs Outside

For contractors comparing the take-home cost of an inside-IR35 status determination against a clean outside-IR35 Limited Co route. Useful when negotiating rate adjustments or weighing a contract change.

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