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.
How locum pharmacists in the UK are taxed in 2026/27: self-employed vs agency PAYE, allowable expenses, IR35 for locum work, and when VAT registration applies.
Everything UK contractors need to know about umbrella companies in 2026/27 -- how pay is calculated, employment rights, IR35 implications and how to spot fraud.
For UK self-employed in 2025/26, sole trader is simpler but limited company saves tax above ~£35-40k of profit. Worked comparison at £30k, £50k, £80k profit — plus IR35 and admin trade-offs
Inside vs outside IR35 in 2026/27 -- how each status is taxed, what it costs your take-home pay and how to estimate the gap as a UK contractor.
Umbrella or your own limited company in 2026/27? Compare take-home pay, IR35, dividend tax and admin so UK contractors can choose the right setup.
A practical guide to IR35 status determination in 2026, covering the three key tests, the CEST tool's limitations, and what happens if you get it wrong.
Detailed take-home calculations for UK contractors at three day rates inside and outside IR35 for 2026/27, including tax, NI, corporation tax and dividend tax.
Contracting inside IR35 means being taxed like an employee, which reduces your take-home pay significantly compared to operating outside. This guide uses worked examples at GBP 400/day and GBP 600/day to show the real difference in 2026.
Should UK contractors operate through a limited company or an umbrella company in 2026/27? We compare tax take-home, IR35 risk, expenses, employment rights and admin burden — with a worked £500/day example.
Salary vs day rate in 2026: turn £450 a day into an annual equivalent, compare outside vs inside IR35, umbrella deductions, the holiday and sick-pay gaps, and a full take-home comparison for UK contractors.
Understand IR35's three key tests, use HMRC's CEST tool correctly, and see exactly what inside vs outside IR35 means for your take-home pay.
On £500/day, working outside IR35 via a limited company takes home approximately £70,000/year net. Inside IR35 via umbrella is approximately £57,000 — around a £13,000 annual difference. Full case study with numbers.
Part 5 (final) of our Spring Budget 2026 series — Corporation Tax, dividend rates for owner-managers, R&D credits, IR35, Class 4 NI and what it all means for limited companies and sole traders.
