Contractor Calculator: Inside IR35 PAYE Calculator

The IR35 (Intermediaries Legislation number 35) is a legislation that was first introduced back in April 2000 and was designed to eliminate any tax avoidance and the avoidance of any National Insurance Contributions (NICs) through the use of intermediaries such as Personal Service Companies or other partnerships. The IR35 is designed to focus on those workers who:

  • Can be regarded as an employee of a client for a variety of tax accounting purposes.
  • Can be regarded as an employee for NIC purposes by the client.

If you are a part of the IR35, all of your earnings will be subject to PAYE and both income tax and National Insurance Contributions (NICs) will be deducted from your earnings.

 

If you are not a part of the IR35, you are allowed to take dividend payments from your company as long as they are not subject to any National Insurance Contributions (NICs). Not that you must not use an intermediary such as an umbrella company and you must be operating your own limited company, in order to receive any dividend payments.

1. Hours, Rates & Salary 2. Business Expenses 3. PAYE Illustration

Take Home Pay Tax Calculator ( Inside IR35, VAT registered, 2016/17 Tax Year )

Hours and Rates


Gross Annual Earnings

The Flat Rate VAT percentage is 11% by default. If you have different Flat Rate VAT percentage put here

Pension Preferences



Next Step: Business Expenses

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