IR35 Calculator

Your complete financial profile is below.

Your current net monthly income is £1,531

If you get caught by IR35, this decreases £288 (18%) to £1,243

If IR35 caught, raising your rate to £18 achieves the same income.

You can lower your rate by £2.58 and earn the same as someone inside IR35

You can take an extra 10 weeks holiday and earn the same as someone inside IR35

To get the same income via permanent employment would require a salary of £23,852

Other relevant information

Being caught by IR35 results in an extra tax burden of £2,225 (66% increase)

The increase in taxes is mainly due to the additional employers and employees N.I., together with income tax being payable at full rate as opposed to a combination of corporation tax and dividend tax which is lower. You also lose the advantage of being able to split your dividends.

These figures are based on current tax legislation March 2010 and may be affected by your personal circumstances. We strongly recommend you take advice from a qualified contractor accountant before acting or not acting on these figures.