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
The take-home figure is only the start
To compare fairly with an umbrella, this calculator assumes you draw every penny of profit as dividends in the same tax year, which is the least efficient thing you can do. Working outside IR35 through your own limited company also gives you options like these:
At typical contract rates, the difference between the assumption above and a planned approach can run into five figures a year on top of the difference shown, and almost none of it is available through an umbrella, where tax is taken before the money reaches you. What applies to you depends on your circumstances.
A note on the £100,000 taper
At this level the planning options above matter even more: retaining profit, pension contributions or a second shareholder can keep taxable income below the taper and recover the allowance.
Change the assumptions
Expenses are exclusive of accountancy fees, which have been baked in for outside IR35. Expenses include 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.
Want the full picture first? Read our guide to PAYE vs umbrella vs limited company.
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.