25 articles tagged with IR35.
Umbrella companies deduct PAYE, NI, and a margin fee before paying contractors. But some umbrella schemes make deductions that are unlawful. Here is what is legitimate, what is not, and how HMRC is cracking down in 2026.
A freelance HR consultant on £450/day nets around £10,000 more a year working genuinely outside IR35 than inside via umbrella. Full worked comparison plus the interim-HR-specific risk factors that push status one way or the other.
An interim finance director on £700/day across a 6-month engagement (£91,000) nets around £60,140 outside IR35 versus £55,855 inside — a £4,285 gap, with interim roles typically carrying higher inside-IR35 risk than standard contracting.
IT contractors on £500/day (£115,000/year) take home roughly £71,000 outside IR35 versus £67,700 inside — a £3,300 gap once employer NI and marginal relief are correctly accounted for. Full test-by-test breakdown.
A self-employed management consultant on £600/day takes home roughly £13,000 more per year working genuinely outside IR35 than inside via umbrella. Full worked example plus the deliverables-vs-control test that decides your status.
Freelance structural engineers working through their own limited company face Corporation Tax, salary/dividend planning and IR35 risk on site-based contracts. Full worked example on £90,000 revenue shows exactly what's left after tax.
Freelance web developers mixing project work and contract roles must weigh sole trader vs limited company and watch IR35 status. Full worked example on £55,000 turnover compares both structures.
Why a contractor day rate needs to be roughly halved, not simply multiplied by working days, to compare fairly with an employee salary — a full 2026/27 worked example.
Locum pharmacists usually work through an agency, either self-employed or via an umbrella company. Full worked example on £58,000 income and how the two structures compare for take-home pay.
How umbrella company margins, employer costs and deductions work in 2026/27 — what actually comes off a contractor's day rate before take-home pay, beyond just the umbrella's stated fee.
What an IR35 blanket determination is, why it usually breaches the reasonable care requirement, and what contractors can do to challenge it through the client-led status disagreement process in 2026/27.
HMRC's Check Employment Status for Tax (CEST) tool is the most commonly used way to test IR35 status. Here's exactly what questions it asks, how it weighs them, and where its outcome is not the final word.
