Inside IR35
£74,423 annual cash
£121,848 cash-equivalent salary
UNDERSTAND YOUR NUMBERS
How to Compare Contract & Permanent Offers
A practical sequence for comparing cash, pensions and benefits against annual contract income.
Tax year 2026/27 · Last verified · Methodology · Official sources
Record your package
Enter salary, likely bonus, pensions, cash allowance and benefits. Do not add paid leave twice.
Build a contract year
Identify rate type, reduce billable days for gaps and include business or umbrella costs.
Read break-even
Compare cash, then pension and benefits. Add an explicit risk uplift before deciding your minimum acceptable rate.
Use the relevant calculator
Worked example: £600/day
220 billable days give £132,000 revenue. These figures use the same engine as your comparison.
Outside IR35
£78,666 annual cash
£133,093 cash-equivalent salary
Make it yours
England, no loans or other income. Inside: assignment rate, no margin, levy or pension. Outside: £3,000 expenses, Personal Allowance salary, no pension or retained profit. Salary comparison: 5% employee and employer pension.
Compare with your salaryHow this calculation works
Revenue is day rate multiplied by billable days. The shared engine applies payroll taxes inside IR35 and company plus personal taxes outside IR35. Equivalent salary and rate solvers match cash, cash plus pension or economic value.
Important assumptions
Annual estimates, England by default, no other income or student loan. Illustrations use £3,000 company expenses, no opening reserves and a 12-month accounting period. Pension, gross benefits and retained profit are not spendable cash.
Record your package
Enter salary, likely bonus, pensions, cash allowance and benefits. Do not add paid leave twice.
Build a contract year
Identify rate type, reduce billable days for gaps and include business or umbrella costs.
Read break-even
Compare cash, then pension and benefits. Add an explicit risk uplift before deciding your minimum acceptable rate.
Frequently asked questions
Is revenue the same as take-home?
No. Employment costs, expenses and taxes can apply before money reaches you. Pension and retained profit are separate.
Can this decide IR35 status?
ContractorMoney.co.uk does not determine IR35 employment status. We model financial consequences after you select a status.
Sources and review
Tax year 2026/27 · Last verified · Methodology · Official sources
- HMRC Income Tax, NI and student-loan thresholds
- HMRC dividend tax
- HMRC Corporation Tax and marginal relief
- HMRC pension tax relief
- HMRC off-payroll working guidance
- Government umbrella-company guidance
ContractorMoney.co.uk does not determine IR35 employment status. Use HMRC's official status guidance. Estimates only, not tax, financial, legal, accounting or investment advice. Read the limitations.