UK Contractor IR35 Calculator
UK Contractor IR35 Calculator
UK • See optimization tip below
Key Metrics
Net Take-Home
£0
Total Tax Liability
£0
Effective Tax Rate
0.00%
Optimization Tip
Income between £100,000 and £125,140 triggers the 60% effective marginal tax trap due to Personal Allowance tapering. Maximizing private pension contributions restores your £12,570 tax-free allowance.
Sample Calculations
| Scenario | Mode | Gross Income | Income Tax | Nic | Total Tax Nic | Result |
|---|---|---|---|---|---|---|
| Low | Inside IR35 | £60,000 | £9,486 | £4,719 | £14,205 | £45,795 |
| Low | Outside IR35 | £60,000 | £9,486 | £3,767 | £13,253 | £46,747 |
| Medium | Inside IR35 | £121,000 | £35,832 | £5,939 | £41,771 | £79,229 |
| Medium | Outside IR35 | £121,000 | £35,832 | £4,987 | £40,819 | £80,181 |
| High | Inside IR35 | £184,000 | £58,319 | £7,199 | £65,518 | £118,483 |
| High | Outside IR35 | £184,000 | £58,319 | £6,247 | £64,566 | £119,435 |
*Sample calculations for demonstration purposes. Actual results vary based on inputs.
Frequently Asked Questions
What is IR35?
IR35 is a piece of UK tax legislation that affects contractors who work through their own limited company. It determines whether you should be taxed as an employee or as a self-employed individual.
How is my IR35 status determined?
Your IR35 status is determined by your working practices and contract terms. Key factors include control, substitution, and mutuality of obligation. If your contract resembles that of an employee, you may be deemed inside IR35.
Disclaimer: For illustrative and educational purposes only. Does not constitute tax, legal, or financial advice. Consult a licensed CPA, EA, or HMRC-authorized accountant.
Sample Calculations
| Scenario | Mode | Gross Income | Income Tax | Nic | Total Tax Nic | Result |
|---|---|---|---|---|---|---|
| Low | Inside IR35 | £60,000 | £9,486 | £4,719 | £14,205 | £45,795 |
| Low | Outside IR35 | £60,000 | £9,486 | £3,767 | £13,253 | £46,747 |
| Medium | Inside IR35 | £121,000 | £35,832 | £5,939 | £41,771 | £79,229 |
| Medium | Outside IR35 | £121,000 | £35,832 | £4,987 | £40,819 | £80,181 |
| High | Inside IR35 | £184,000 | £58,319 | £7,199 | £65,518 | £118,483 |
| High | Outside IR35 | £184,000 | £58,319 | £6,247 | £64,566 | £119,435 |
*Sample calculations for demonstration purposes. Actual results vary based on inputs.