Outside IR35 vs umbrella calculator
See what you would take home on the same contract rate, and the umbrella rate you would need to match it.
This is the assignment rate the agency pays out. It is the same figure whether they pay your limited company or an umbrella.
Working outside IR35 through your own limited company, you could be better off by
£0
Why this figure understates your options
This calculator assumes you take every penny of profit out as dividends in the same tax year. That is deliberate, because it is the only fair way to compare with an umbrella, where tax comes off before you are paid. It is also the least efficient thing you can do. Through a limited company you do not have to:
- Leave profit in the company and draw it in a leaner year at 10.75% instead of 39.35%
- Run an electric vehicle through the company, at 4% benefit in kind
- Bring in a second shareholder, using a second personal allowance and basic rate band
- Take capital out on exit at 18% under Business Asset Disposal Relief
At these rates, the difference between the assumption above and a planned approach can run into five figures a year. None of it is available through an umbrella, where the tax is taken before the money reaches you. What applies to you depends on your circumstances.
Change the assumptions
Expenses are inclusive of accountancy fees (£1,200) and of travel to a temporary workplace. A limited company outside IR35 gets tax relief on these. An umbrella worker, who HMRC presumes is under supervision, direction or control, does not, so pays for the same things out of taxed income.
Figures: 2026/27 tax year, rest of UK rates (Scottish rates are not modelled). Assumes 37.5 hours over 5 days, no pension, no student loan and no other income. Calculations are for illustration only and are not tax advice.