Estimate 2026/27 contractor take-home pay for an inside-IR35/PAYE engagement or an outside-IR35 single-director limited company.
Contract details
Estimated take-home
Inside IR35 and outside IR35 estimates
HMRC’s off-payroll working rules are intended to make contractors who work like employees pay broadly the same Income Tax and National Insurance as employees. In inside-IR35/PAYE mode, this calculator first allows for engagement costs and employer National Insurance, then applies employee Income Tax and Class 1 NI.
Outside-IR35 mode assumes a single-director company with no Employment Allowance. It deducts business expenses, director salary, employer NI and Corporation Tax, then treats the remaining distributable profit as dividends and applies the 2026/27 dividend allowance and rates.
2026/27 assumptions
| Item | Assumption |
|---|---|
| Personal Allowance | £12,570, tapered above £100,000 |
| Employee NI | 8% to £50,270, then 2% |
| Employer NI | 15% above £5,000 |
| Corporation Tax | 19% up to £50,000; marginal relief to £250,000; 25% above |
| Dividend allowance | £500 |
| Dividend tax | 10.75%, 35.75% and 39.35% |
What the result does not include
The estimate excludes VAT, pension contributions, student loans, benefits, other personal income, associated companies, retained profits, capital allowances and accounting fees beyond the expenses entered. Outside-IR35 calculations assume all post-tax profit is distributed in the same tax year.
Use HMRC’s Check Employment Status for Tax tool for status guidance. You can also compare PAYE employment using our Take Home Pay Calculator UK.
Official sources
Frequently asked questions
Does this calculator decide my IR35 status?
No. Status depends on the contract and actual working practices. Use HMRC CEST and obtain professional advice where needed.
What does inside IR35 mean for pay?
PAYE Income Tax and employee National Insurance are normally applied to the deemed employment income, with employer costs funded separately from the assignment amount.
How is outside-IR35 take-home estimated?
The calculator models business expenses, director salary, employer NI, Corporation Tax and dividends for a simple single-director company.
Does the calculator include VAT?
No. VAT collected for HMRC is not treated as contractor income here.
Why might my real take-home differ?
Tax codes, other income, pension, student loans, expenses, company circumstances and pay timing can all change the result.