IR35 Tax Calculator
Compare inside-IR35 and outside-IR35 take-home for the same contract rate, with an auto-optimised director salary and the equivalent permanent (FTE) gross salary. 2025/26 UK rates.
Contract details
Most contractors use 44-48 to allow for holiday, sickness and gaps between contracts.
Allowable business expenses (accounting, equipment, training, travel). Reduces corporation tax but does not apply to inside-IR35 income.
Annual allowance £60,000 (2025/26).
Optimise auto-picks the better of £5,000 (Secondary Threshold) or £12,570 (Personal Allowance).
What happens to my data?
Annual contract revenue
£115,000
£500 / day × 5 days × 46 weeks
Outside IR35
£73,847
Annual take-home (£6,154/mo)
Inside IR35
£68,870
Annual take-home (£5,739/mo)
Outside - Inside
£4,977
£415/mo more outside
FTE-equivalent gross salary
£111,020
Permanent PAYE gross needed to match the outside-IR35 take-home shown above.
Director salary used (outside)
£12,570
Optimised: Personal Allowance produces the highest take-home.
Where every £100 of revenue goes
Annual tax breakdown
2025/26 UK rates
| Item | Outside | Inside |
|---|---|---|
| Contract revenue | £115,000 | £115,000 |
| Allowable expenses | - | - |
| Director salary | £12,570 | £100,652 |
| Employer NI | £1,136 | £14,348 |
| Corporation tax | £23,093 | - |
| Dividends paid | £78,201 | - |
| Income tax (salary) | - | £27,758 |
| Employee NI | - | £4,024 |
| Dividend tax | £16,924 | - |
| Total tax | £41,153 | £46,130 |
| Annual take-home | £73,847 | £68,870 |
| Monthly take-home | £6,154 | £5,739 |
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