2026/27 Tax YearIR35 Reforms

Off-Payroll Working Rules Calculator

Calculate your take-home pay under the off-payroll working rules (IR35 reforms) when working for medium/large private sector clients.

Off-Payroll Working Rules (April 2021)

Medium and large private sector clients are now responsible for determining IR35 status. If determined inside IR35, your fee-payer must deduct PAYE tax and NI before paying your limited company.

Contract Details
Off-Payroll Tax Breakdown
Deductions applied by your fee-payer
Gross Contract Value£110,000
Employer NI (15%)14,615
Deemed Salary£95,386
Income Tax (PAYE)25,586
Employee NI (8%)3,016
Net Payment to Ltd Company£66,783

Monthly

£5,565

Weekly

£1,284

Effective Tax Rate

39.3%

Key Points About Off-Payroll Rules
  • Who decides? Medium and large private sector clients determine IR35 status (not you)
  • Who deducts? The fee-payer (often an agency) deducts PAYE and NI before paying your company
  • Small clients Are exempt - you still determine your own status
  • 5% allowance The 5% allowance for limited company expenses was removed
  • Status Determination Statement (SDS) Clients must provide written reasoning for their decision
  • Challenge process You can challenge the determination through the client disagreement process