With your current salary under each year's HMRC rules (PAYE, England)
Estimates only · HMRC 2025/26 · Not financial advice
Monthly take-home
£3,635/mo
Keep
73%
Inside IR35 Take-Home Calculator 2025/26
Working inside IR35 triggers deemed employment rules — your PSC must pay both employer NI (15%) and employee NI, plus income tax, on your contract income. The result: take-home closer to a permanent employee than a true contractor.
Inside IR35 impact
Employer NI (15%) comes out of your contract rate before you see any income. On a £500/day rate, you typically retain 55-60% vs 70-75% outside IR35. Pension salary sacrifice is one of the few ways to reduce this.
Frequently asked questions
IR35 is HMRC's off-payroll working rules. If your contract is 'inside IR35' you are treated as a deemed employee for tax purposes. Your personal service company (PSC) must pay employer NI on your income, and you pay employee NI and income tax — leaving far less in your pocket than a true contractor arrangement.
On a £500/day rate (approx £125k/yr) inside IR35 you typically take home 55–60% of your gross contract value after employer NI (13.8%), employee NI, and income tax. Outside IR35 via a PSC with efficient extraction (salary + dividends) you can retain 70–75%.
Yes. When working inside IR35 through a PSC or umbrella company, the employer's NI (13.8% above the secondary threshold) is effectively funded from your contract rate before you see any income. This calculator models this correctly — enter your gross day rate and select 'Inside IR35'.
Financially they are nearly identical inside IR35 — both must apply the deemed employment rules. Umbrella companies are simpler administratively. A PSC gives you more control but adds accountancy costs. If you're certain you're inside IR35 long-term, an umbrella is usually the pragmatic choice.
Yes. Pension salary sacrifice is one of the few reliefs available inside IR35. It reduces the deemed employment income subject to both employee and employer NI, making it especially tax-efficient. Enable pension sacrifice in this calculator to model the saving.