Contractor Calculator: Outside IR35 PAYE Calculator

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The IR35, otherwise known as the Intermediaries Legislation number 35, is a legislation that was introduced back in April of 2000. The aim of this legislation is to eliminate any avoidance of tax payments and NICs, otherwise known as National Insurance Contributions,. the IR35 is meant to focus on workers who:

  • Can be regarded as an employee of a client for tax accounting or related purposes.
  • Can be regarded as an employee in employed earner's employment by the client for NIC purposes.

If you fall inside of the IR35: All of the money you are is subject to PAYE, income tax and National Insurance Contributions and deductions will be made from your earnings.

 

If you fall outside of the IR35: You are able to take any dividend payments from your company that are not subject to National Insurance Contributions. Carefully note that you must have control of your own limited company and not have any intermediary, such as an umbrella company, to receive any dividend payments from your payments.

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

Take Home Pay Tax Calculator ( Outside IR35, VAT registered, 2017/18 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

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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