Inside vs Outside IR35: The Real Take-Home Difference

Working inside IR35 means your pay goes through PAYE, the same as a regular employee. Working outside IR35 typically means drawing income through a limited company.

The gap in take-home pay between the two can reach £10,000 to £20,000 a year on the same contract day rate.

This guide explains the HMRC tests that determine your status and shows the real after-tax difference at common day rates.