UltimateTools
Career & Work

How to Use the IR35 Calculator

Enter your day rate and typical working days, and select inside or outside IR35 status — the calculator applies the appropriate tax treatment for each scenario (including umbrella fees for inside IR35, or salary-plus-dividend extraction for outside IR35) to show the resulting take-home pay comparison.

The IR35 Calculator applies the correct tax treatment for each status — here's what to enter for an accurate comparison.

Entering rate and working pattern

Enter your day rate and typical number of working days per month or year — the calculator uses this to compute gross contract income before applying the appropriate tax treatment for the selected IR35 status.

Comparing inside vs. outside IR35 directly

Running the calculation for both statuses at the identical day rate shows the direct take-home pay difference between the two, making concrete exactly how much IR35 status affects real income for the same gross contract terms, as covered in the take-home-pay guide.

Frequently asked questions

Does the calculator account for umbrella company fees?

Check whether the specific tool includes an umbrella fee input for the inside-IR35 calculation — since fees vary between providers, entering a realistic fee estimate (or a specific known fee) gives a more accurate inside-IR35 take-home figure.

Can this calculator tell me whether my contract is actually inside or outside IR35?

No — it calculates take-home pay for either scenario, but determining actual IR35 status depends on the specific working arrangement's characteristics and is typically assessed by the end client or a specialist IR35 status determination process, not by this calculator.