The IR35 calculator website is provided to support the recruitment agencies, clients and thousands of contractors that we work with each year and remove some of the common misconceptions about IR35. The IR35 Calculator provides 2 purposes, the first is a 'Path of Education' for those who do not understand what IR35 is, how IR35 came about or it's significant impact on UK Contracting. IR35 is not just an issue for contractors, it affects everyone, employers, employees, recruitment agencies, accountants, freelancers, payroll providers and the wider UK economy as a whole. Secondly, the IR35 Calculator provides a payroll calculator for quick calculations and illustrations of take home pay under each potential variant of IR35.
IR35 is the pivotal legislation that determines whether a contractor or freelancer is deemed to be employed or self employed within their contract.
If you are new to IR35 or want to find out how IR35 affects contractors and how contractors can be paid you should read our suite of IR35 Guides which include practical examples and test cases.
Your IR35 status is determined by HMRC who use a series of business entity tests to gauge whether you are contracting inside or outside of IR35 legislation. Your IR35 status then determines how you should be paid whilst working within your contract.
As a freelancer / contractor, the first thing you need to do is determine your IR35 status. Use the Business Entity test below to determine your IR35 status, once you know your status, choose the relevant IR35 calculator from the top of this page to work out your take home pay.. The IR35 status calculation looks at twelve specific business entity tests as defined by HMRC. These include:
Answer the following questions to receive a IR35 Risk score for your contract. The IR35 Guage above will alter as you answer the questions.