Off-payroll comparison – contractor bears the cost

The below calculator gives you a comparison on your take home from the limited company, after the off-payroll changes come into effect from 6 April 2020. This is based on the assumption the client has deemed you inside IR35 and the employment costs are borne by you.

(If you are paid hourly, multiply your rate by the hours you work in a day)

What is your day rate?

The calculations are for illustrative purposes only. We will not accept any liability to any party on the results produced by the calculator. You should seek professional advice to calculate your tax liability.*

Result

	Outside IR35	Off-payroll
	Limited company	Contractor bears employment costs
Contractor rate
Annual income
Annual take home
Monthly take home
Return
You receive a daily income of
Your current annual take home with the company
If off-payroll applies and the employer passes the employment costs to you the take home changes to
That's a decrease in net annual income of
In percentage terms this equates to
You effectively need to increase your daily rate by
The effective daily rate should be
This will increase your net in hand to

Assumptions:

Based on the tax rates applicable in 2022/23 and 44 working weeks in a year.
Annual accountancy Fee is £1,200.
No expenses are claimed through the company apart from salary of £8,632.
Contractor bears employment costs implies the employment costs are borne by the contractor from the ongoing rate.