Contracting structures – compare and combine
Understand how Standard PAYE, umbrella and limited company (inside IR35) are treated in the calculator, and how to think about combining multiple income sources.
Switch between an overview of each structure and guidance on combining income.
Standard PAYE
This is traditional UK employment through PAYE. Your employer deducts income tax and National Insurance before you are paid. Use the Standard PAYE tab in the main calculator to model this, including pension and student loan.
Umbrella (inside IR35)
With an umbrella company you are treated like an employee for tax purposes. Income is usually inside IR35 and taxed via PAYE. Use the Umbrella tab to model day, hourly or monthly rates as PAYE income, including tax, NI and pension.
Limited company (inside vs outside IR35)
As a limited company contractor, work can be inside or outside IR35. Inside IR35 is taxed broadly like employment, which the Limited company tab models using PAYE-style rules. Outside IR35 involves company profits and dividends. That full outside IR35 modelling is not yet supported in the calculator – you'll see a clear message on the Limited tab when that scenario applies.