Contractor Calculator: Outside IR35 PAYE Calculator

The IR35 (Intermediaries Legislation number 35) is a legislation that was first introduced back in April of 2000. It's sole aim is to eliminate any tax or National Insurance Considerations (NICs) avoidances through the use of a variety of intermediaries, including Personal Service Companies and other partnerships. The IR35 focuses on workers who could be:

  • Considered as an employee of the client purely for tax accounting purposes.
  • Considered as an employee in employed earner's employment by for the client purely for NIC purposes.

If you fall into the IR35 then your earnings are made subject to PAYE with both your income tax and National Insurance Contributions deductions being made from your earnings.

 

If you do not fall into the IR35 then any dividend payments from your company that are not subject to your National Insurance Contributions. Although with this in mind, you must be operating your own limited company and not currently be using any intermediary companies, such as an umbrella company, in order to receive any dividend payments.

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

Take Home Pay Tax Calculator ( Outside IR35, Non VAT Registered, 2017/18 Tax Year )

Hours and Rates


Gross Annual Earnings

Salary Preferences

When you work through a limited company you will need to decide the amount of salary you'd like to take.
We recommend that you take a salary equal to the NI Threshold which is £ per year for 2017/18


Pension Preferences



Next Step: Business Expenses
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