Use this calculator to assess the impact that the Off-Payroll (IR35) legislation has on your net income.
The Off-Payroll (IR35) legislation is a reform to IR35 that was introduced in the public sector in April 2017, and which has been subsequently
planned to be extended to the private sector in April 2021. It is designed to identify ‘disguised employees’ and ensure they and their hirers pay employment taxes,
by treating the contractors fees as salary. The legislation is highly complex.
Please enter your details to calculate the impact of Off-Payroll on you and your hirer:
NOTE: The tax calculations under the old Off-Payroll legislation are different, and are higher for the contractor.
Please use our IR35 Calculator if you wish to
calculate your tax under the old legislation.
The legislation (Chapter 10 of ITEPA) is highly complex and differs from the original IR35 legislation (Chapter 8 of ITEPA). The main difference is that under
the new rules the vast majority of the extra tax payable (namely, Employers National Insurance) is payable by the hirer on top of the fees paid to the contractor.
Under the old rules, this part of the tax was paid by deducting it from the contractor's fees. This was a significant change.
Contractors and hirers who are considered "inside IR35" pay significantly more tax. There are many strategies you can adopt to ensure you
stay outside IR35 – find out how from our comprehensive series of IR35 guides.
Solutions for Contractors: