We compare your contractor earnings (day rate × working days) against the total value of a permanent package. For permanent roles, we include base salary, employer pension contributions, annual bonus (as % or fixed), and the monetary value of paid holidays. For contractors, we optionally deduct IR35-related costs (employer's NI bands, Apprentice Levy, umbrella fees) or outside‑IR35 business costs (accountant, bank and insurance).

You enter your expected working days per year. The default is 223, which roughly accounts for weekends, bank holidays and time off between contracts or for holidays. You can change this to suit your situation.

If you select Inside IR35, we apply: Employer's NI with bands (0% on the first £5,000; your chosen middle‑band rate on £5,000–£50,270; 2% above £50,270), plus Apprentice Levy at your chosen %, and umbrella company fees (either a % of income or a fixed weekly fee × 52).

Percentage fees scale with your income (e.g. 3% of annual income). Fixed weekly fees are converted to an annual amount by multiplying by 52. Choose the option that matches your umbrella company.

We include typical limited‑company costs you input: accountant fees (monthly × 12), bank fees (monthly × 12), and business insurance (annual). These are subtracted from your contractor total to show an after‑costs figure.

We add the employer pension contribution (as a % of salary), the annual bonus (either % of salary or a fixed £ amount), and the value of paid holidays (holiday days × permanent daily rate). These are displayed separately in the results for transparency.

Contractor daily rate is the amount you enter; contractor hourly rate is that daily rate divided by (hours per week ÷ 5). Permanent daily rate is the annual package value divided by working days (52×5 minus your holiday days). Permanent hourly rate is annual value divided by (52 × hours per week).

We compare the contractor figure after applicable deductions/costs to the permanent annual package value. The label shows which is higher, by how much per year, and the percentage difference.

No. This is a pre‑tax comparison of package values. It does not model your personal income tax, employee NI, corporation tax, VAT, or other individual circumstances.

Yes — all IR35 percentages/fees and outside‑IR35 costs are editable in the form so you can reflect your real situation.

No. This tool is for guidance and education only. Consider seeking professional advice before making decisions.