2026/27 tax year
IR35 Take-Home Comparison
Compare take-home pay as a limited company contractor (outside IR35) against going through an umbrella company (inside IR35), for the same contract rate.
£
£
per year£
per year£
per yearFor the limited company this is an employer contribution (no tax or NI anywhere) - for the umbrella it's a salary-sacrificed contribution, saving Income Tax and employee NI.
Student loan plan (umbrella only)
Assumes a director's salary of £12,570 (no Income Tax or employee NI), full distribution of remaining profit as dividends, and doesn't account for student loan repayments on dividend income, which HMRC does include via Self Assessment.
Limited company (outside IR35)
Director's salary£0
Employer NI on salary£0
Corporation Tax£0
Dividends£0
Dividend Tax£0
Take-home pay
£0
Umbrella company (inside IR35)
Employer NI£0
Apprenticeship Levy£0
Umbrella margin£1,200
Gross taxable pay£0
Income Tax£0
Employee NI£0
Take-home pay
£0
Limited company is better off by £0 per year