Salary vs Inside IR35 Calculator
Enter a day rate to see your PAYE salary, tax, NI, and net take-home inside IR35. Optionally compare against a permanent salary side-by-side.
Results
| Item | Inside IR35 | Annual | |
|---|---|---|---|
| Contract value (day rate × days) | £0 | — | — |
Contract value (day rate × days) IR35£0 Salary— | |||
| Agency / umbrella fees | −£0 | — | — |
Agency / umbrella fees IR35−£0 Salary— | |||
| Employer NIC (carved out) | −£0 | — | — |
Employer NIC (carved out) IR35−£0 Salary— | |||
| Total cost to engager / employer | £0 | — | — |
Total cost to engager / employer IR35£0 Salary— | |||
| PAYE salary | £0 | — | — |
PAYE salary IR35£0 Salary— | |||
| Income tax (annual) | £0 | — | — |
Income tax (annual) IR35£0 Salary— | |||
| Personal allowance | £12,570 | — | — |
Personal allowance IR35£12,570 Salary— | |||
| Employee NIC (annual) | £0 | — | — |
Employee NIC (annual) IR35£0 Salary— | |||
| NIC below UEL (monthly) | £0 | — | — |
NIC below UEL (monthly) IR35£0 Salary— | |||
| NIC above UEL (monthly) | £0 | — | — |
NIC above UEL (monthly) IR35£0 Salary— | |||
| Net annual take-home | £0 | — | — |
Net annual take-home IR35£0 Salary— | |||
| Net monthly take-home | £0 | — | — |
Net monthly take-home IR35£0 Salary— | |||
| Effective day rate (net) | £0 | — | — |
Effective day rate (net) IR35£0 Salary— | |||
| Effective hourly rate (8h day) | £0 | — | — |
Effective hourly rate (8h day) IR35£0 Salary— | |||
| Effective tax rate | 0.00% | — | — |
Effective tax rate IR350.00% Salary— | |||
Inside IR35 means HMRC treats you as an employee for tax purposes. Your day rate is converted to a PAYE salary, and you pay full income tax and employee National Insurance — just like a permanent employee, but without employment benefits.
An all-in rate means the day rate is the total cost to the engager. Employer NIC (15% from April 2025) is carved out of your rate, reducing the PAYE salary. If the rate is not all-in, the engager pays employer NIC on top of your day rate.
Agency or umbrella companies typically charge a monthly fee (often £30–£50) for payroll processing. This is deducted from your contract value before calculating the PAYE salary.
Yes. Salary sacrifice through an umbrella company is possible and reduces the gross for income tax and NI — making it the most efficient pension method. Enter the annual sacrifice amount in the pension section.
Enter a gross annual salary on the right side. The calculator shows take-home, tax, and NI for both scenarios side-by-side so you can find the equivalent permanent salary for your day rate — or vice versa.
Net annual take-home divided by the number of working days. This is what you actually earn per day after all deductions — the true comparable for evaluating whether a contract rate is worth it.
Inside IR35, if your rate is all-in (total cost to engager), employer NIC comes out of your rate before the PAYE salary is calculated. A £450/day all-in rate at 15% employer NIC yields a PAYE salary of roughly £86,000 — not £99,000.
Important disclaimer
Content on this site is for educational and planning purposes only and does not constitute regulated financial advice. Always assess your own circumstances and seek guidance from a qualified adviser where appropriate. See the full disclaimer.