Loading Tools
Loading Tools
Compare illustrative inside vs outside IR35 financial scenarios for 2026/27; this is not an HMRC status decision.
· UK tax estimates use 2026/27.
Compare a sample £500/day contract for 220 days (£110,000 annual fee, before VAT) under two simplified financial arrangements. Outside defaults are £12,570 annual salary, £500 monthly operating costs, £1,000 annual review and £800 annual insurance. This estimates scenario cash; it does not determine employment status or recommend a contract structure.
Annual estimate from £110,000 gross contract income.
Same gross contract income under the selected inside and outside assumptions.
| Scenario | Gross contract income | Net cash |
|---|---|---|
| Inside | £110,000 | £72,357 |
| Outside | £110,000 | £66,249 |
Inside employer NI is funded from the small-client PSC fee, but paid on top by a medium/large or public fee-payer. Outside employer NI reduces company profit.
| Item | Inside scenario | Outside scenario |
|---|---|---|
| Small-client 5% general-expense allowance | £0 | £0 |
| Income tax | £33,432 | £0 |
| Employee NI | £4,211 | £0 |
| Employer NI | £15,750 | £1,136 |
| Corporation tax | £0 | £19,701 |
| Dividend tax | £0 | £15,115 |
| Company costs | £0 | £7,800 |
Illustrative net cash at nearby day rates; all other selected inputs are held constant.
| Day rate | Annual gross | Inside net cash | Outside net cash |
|---|---|---|---|
| £300 | £66,000 | £48,837 | £44,790 |
| £350 | £77,000 | £55,217 | £50,665 |
| £400 | £88,000 | £61,597 | £55,859 |
| £450 | £99,000 | £67,977 | £61,054 |
| £500 | £110,000 | £72,357 | £66,249 |
| £550 | £121,000 | £76,219 | £71,443 |
| £600 | £132,000 | £81,118 | £76,638 |
| £650 | £143,000 | £86,948 | £80,568 |
| £700 | £154,000 | £92,778 | £83,944 |
IR35 is the common name for the off-payroll working rules. This page compares simplified inside- and outside-contract cash scenarios; it does not determine employment status or replace HMRC's assessment of a real engagement.
The model uses your selected region, contract day rate, working days, outside-company salary and costs. Small private-client cases use a simplified PSC deemed-payment path; medium/large private and public-sector cases use fee-payer PAYE, with employer National Insurance added to the contract fee. Pensions, other income and engagement-specific deductions are outside this estimate.
Use HMRC CEST and the contract’s actual working practices to assess status. Contract figures stay in this page session; they are not saved to browser storage or added to the URL. The estimate is not a payroll quote, tax return or recommendation about how to structure an engagement.
These HMRC and GOV.UK sources explain the rules behind the calculator. They take priority over any simplified scenario shown above.