IR35 & Contracting
Outside IR35 Calculator
Estimate limited company contractor take-home pay from salary and dividends after expenses and corporation tax.
Total personal take-home
£76,432.21
£6,369.35 monthly. Tax year 2026/27.
Outside IR35 breakdown
- Company revenue
- £126,500.00
- Allowable expense estimate
- £3,000.00
- Salary cost
- £13,705.50
- Estimated company profit
- £109,794.50
- Estimated corporation tax
- £25,345.54
- Estimated dividend amount
- £84,448.96
- Estimated dividend tax
- £20,586.75
- Retention percentage
- 60.42%
How to use this outside IR35 calculator
Enter the day rate, working pattern, annual expenses, salary, pension contribution, dividend distribution assumption, corporation tax treatment, other income, and tax year.
Methodology and formula
The calculator models a simplified UK limited company route. Revenue funds business expenses, salary cost, and pension before corporation tax. Remaining post-tax profit is distributed according to the dividend percentage and personal dividend tax is estimated.
profit = revenue - expenses - salary_cost - company_pension
post_tax_profit = profit - corporation_tax
take_home = net_salary + dividends - dividend_taxExample calculation
A £550 day rate for 230 working days creates £126,500 revenue. With £3,000 of expenses and a £12,570 salary, the calculator estimates profit, corporation tax, dividends, dividend tax, and personal take-home.
Important considerations
Outside IR35 is not automatically available because a contract says so. Working practices, Status Determination Statements, allowable expenses, company accounting periods, associated companies, VAT, and director payroll choices all matter.
FAQ
Does this replace an accountant?
No. It is a planning calculator and uses simplified annual assumptions.
What if expenses exceed revenue?
Profit is floored at zero so results do not become negative, NaN, or infinite. Real company losses need accounting advice.
Related tools
Inside IR35 Calculator, IR35 Take-Home Pay Calculator, and IR35 Salary Equivalent Calculator.
Disclaimer
Results are estimates and are not tax, financial, legal, employment, or accounting advice. Verify assumptions with a qualified professional.