Umbrella vs Ltd Company Take Home Calculator UK 2026
Compare your real net pay between umbrella PAYE and limited company across IR35 inside and outside scenarios. Full UK tax treatment for 2026/27 — income tax, employee & employer NI, apprenticeship levy, dividend tax, corporation tax with marginal relief.
Umbrella vs Limited Company Calculator
Enter your day rate and IR35 position below. The calculator applies 2026/27 UK tax bands, dividend allowance £500, corporation tax with marginal relief (19%/25% with 3/200 fraction), apprenticeship levy 0.5%, and employer NI 15%.
How umbrella companies work in 2026
An umbrella company is a UK PAYE employer that sits between a contractor and an end client or recruitment agency. The agency invoices the end client at the contractor's day rate; the umbrella invoices the agency for the same rate; the umbrella then pays the contractor a PAYE salary after deductions. Crucially, the contractor is an employee of the umbrella for tax and employment-law purposes — receiving holiday pay, statutory sick pay (SSP), automatic enrolment pension, and full employment rights from day one.
Out of the gross contract value, the umbrella deducts six layers before the contractor's taxable salary is calculated:
- Employer's National Insurance: 15% (2026/27 main rate) on the salary above £5,000 secondary threshold
- Apprenticeship Levy: 0.5% of gross payroll (umbrella exceeds the £3m threshold)
- Umbrella margin: typically £15-£35 per week (£20/week = £1,040/year on a 52-week assumption)
- Holiday pay accrual: 12.07% of gross pay (28 days statutory holiday over 232 working days)
- Auto-enrolment pension: 3% employer minimum (offset against contributions where opted in)
- Employer's Class 1A NI on benefits in kind: if any — typically nil for pure contractors
Only after all six deductions does the contractor's PAYE salary appear, taxed at the normal personal allowance (£12,570), 20%/40%/45% income tax bands, and employee NI of 8% on earnings between £12,570 and £50,270, plus 2% above £50,270. The Freelancer & Contractor Services Association (FCSA) accredits compliant umbrella operators; fcsa.org.uk publishes the live member list.
How limited company contracting works in 2026
A limited company contractor — usually trading through a Personal Service Company (PSC) — owns 100% of the shares in a UK private limited company set up at Companies House. The contractor is the sole director and typically the sole employee. Two streams of income are extracted from the company:
Director salary
The conventional optimal salary in 2026/27 is £12,570 — exactly the personal allowance, plus £1,048 below the £13,618 lower-earnings threshold for employee NI. At £12,570 there is zero income tax (personal allowance) and zero employee NI; the company benefits from a small corporation tax deduction (£2,389 saved at 19%). Some contractors push salary to the £50,270 higher-rate threshold to maximise corporation tax relief and pension contribution capacity, accepting employee NI of £3,016 — viable only when expecting to clear the higher-rate threshold anyway.
Dividends
After corporation tax, the company's distributable profit is paid to the shareholder as a dividend. The first £500 (dividend allowance, 2026/27) is tax-free. Dividends are then taxed at:
- 8.75% within the basic-rate band (gross income £12,570 to £50,270)
- 33.75% within the higher-rate band (£50,270 to £125,140)
- 39.35% within the additional-rate band (above £125,140)
Crucially, dividends incur zero National Insurance — neither employer nor employee. This is the structural advantage of the Ltd route versus PAYE.
Corporation tax with marginal relief (2026/27)
| Profit band | Rate | Effective marginal rate |
|---|---|---|
| £0 - £50,000 | 19% (small profits rate) | 19% |
| £50,001 - £250,000 | 25% less 3/200 marginal relief | 26.5% |
| £250,001+ | 25% (main rate) | 25% |
The marginal-relief formula is 3/200 × (£250,000 - profit) × (profit/profit), giving an effective rate around 26.5% in the middle band. This means a contractor earning £100k profit pays £22,750 corporation tax (22.75% effective), and £150k profit pays £35,250 (23.5% effective). Source: HMRC Corporation Tax rates at gov.uk/government/publications/rates-and-allowances-corporation-tax.
IR35: inside vs outside — the £15,000/year question
IR35 (the off-payroll working rules in Chapter 8 and Chapter 10 of Part 2 ITEPA 2003) determines whether HMRC treats a PSC contractor as a 'disguised employee'. Since April 2021, for medium and large private-sector clients, the end client determines IR35 status and issues a Status Determination Statement (SDS) to both the contractor and the fee-payer. For small clients (under £10.2m turnover, fewer than 50 employees, balance sheet under £5.1m — two of three for two consecutive years per s382 Companies Act 2006), the contractor's own PSC remains responsible for the determination.
The three pillars of an outside-IR35 determination
- Right of substitution: Can the contractor send a substitute to perform the work? A genuine, unfettered substitution right is the strongest single indicator of self-employment. If the client can reject substitutes on personal grounds, the right is fettered and IR35 will likely catch the contract. See HMRC's ESM Manual ESM7150 at gov.uk/hmrc-internal-manuals/employment-status-manual.
- Supervision, Direction and Control (SDC): The 'how, what, when, where' test. If the client controls the working method (not just the deliverable), the contractor is employee-like. SDC absence requires the contractor to genuinely determine their own working method.
- Mutuality of Obligation (MoO): Is the client obliged to offer more work, and is the contractor obliged to accept it? Genuine contracts have no MoO beyond the current piece of work; if the contract continues automatically with new tasks, MoO is present and the engagement looks employment-like.
Secondary indicators
- Financial risk: Does the contractor have skin in the game — fixed-price work, rectification at own cost, liability insurance, capital investment in tools and training?
- Integration: Is the contractor on the client's org chart, attending team meetings, having a company email signature, being managed as if an employee?
- Exclusivity: Is the contractor free to take on parallel clients, or contractually restricted?
- Part-and-parcel: Has the contractor been at the same client for years, doing the same role as the employees beside them?
CEST tool and its limitations
HMRC's Check Employment Status for Tax (CEST) tool produces an outside or inside determination based on roughly 30 questions. CEST is the official HMRC tool, but contractor advocacy groups including IPSE (Association of Independent Professionals and the Self-Employed) and ContractorUK note that CEST does not weigh Mutuality of Obligation sufficiently and produces 'undetermined' on roughly 19% of contracts. Many firms therefore commission manual SDS assessments from specialist firms (Qdos, IR35 Shield, Bauer & Cottrell, Markel Tax) costing £150-£400 per contract.
Worked example 1: £400 day rate (entry-level contracting)
A junior software developer charges £400/day, working 220 billable days = £88,000 contract value. Contract assessed as outside IR35 by a small private-sector client (so contractor's PSC determines status).
Umbrella PAYE route
| Item | Annual amount |
|---|---|
| Gross contract value | £88,000 |
| Less umbrella margin (£20/week × 52) | (£1,040) |
| Less apprenticeship levy (0.5%) | (£440) |
| Less employer NI (15% above £5k threshold) | (£10,940) |
| Holiday pay accrued and paid through PAYE | (included) |
| = Taxable PAYE salary | £75,580 |
| Income tax (£12,570 PA, 20% to £50,270, 40% above) | (£17,665) |
| Employee NI (8% £12,570-£50,270, 2% above) | (£3,522) |
| Net take-home | £54,393 |
| % of contract value | 61.8% |
Limited Company (outside IR35) route
| Item | Annual amount |
|---|---|
| Gross revenue | £88,000 |
| Less director salary £12,570 | (£12,570) |
| Less employer NI on salary (15% above £5k) | (£1,136) |
| Less accountancy (£150/month) | (£1,800) |
| Less business insurance/professional subs | (£600) |
| = Profit before corporation tax | £71,894 |
| Corporation tax (25% less marginal relief £2,672) | (£15,302) |
| = Distributable profit (dividends) | £56,592 |
| Director salary paid (no income tax, no NI) | £12,570 |
| Dividends paid £56,592 (£500 tax-free) | £56,592 |
| Less income tax on dividends (8.75% × £37,200, 33.75% × £18,892) | (£9,628) |
| Net take-home (salary + dividends) | £59,534 |
| % of contract value | 67.7% |
Saving from Ltd vs umbrella: £5,141/year (5.8% of contract value). Note: at this rate point, the marginal Ltd saving is modest, and the administrative burden (annual accounts, confirmation statement, VAT registration if turnover exceeds £90k, corporation tax return) consumes time. Junior contractors expecting to be in market less than 12 months may rationally choose umbrella for simplicity.
Worked example 2: £500 day rate (mid-market contracting)
A senior business analyst charges £500/day, working 220 days = £110,000 contract value. Outside IR35 SDS issued by a medium private-sector client.
Umbrella PAYE
| Item | Annual amount |
|---|---|
| Gross contract value | £110,000 |
| Less umbrella margin | (£1,040) |
| Less apprenticeship levy 0.5% | (£550) |
| Less employer NI 15% | (£13,861) |
| = Taxable salary | £94,549 |
| Income tax | (£25,082) |
| Employee NI | (£3,901) |
| Net take-home | £65,566 |
| % of contract value | 59.6% |
Limited Company (outside IR35)
| Item | Annual amount |
|---|---|
| Gross revenue | £110,000 |
| Less director salary £12,570 | (£12,570) |
| Less employer NI | (£1,136) |
| Less accountancy + insurance | (£2,400) |
| = Profit before CT | £93,894 |
| Corporation tax (25% less marginal relief £2,342) | (£21,131) |
| = Distributable dividends | £72,763 |
| Tax on dividends (8.75% £37,200, 33.75% £35,063) | (£15,089) |
| Net take-home | £70,244 |
| % of contract value | 63.9% |
Saving from Ltd vs umbrella: £4,678/year (4.3% of contract). Add £10,000/year of legitimate pension contributions through the Ltd and the saving widens further — corporation tax relief of £2,650, plus tax-free growth, taking the effective Ltd advantage above £7,000/year.
Worked example 3: £600 day rate, outside IR35, with pension contribution
A senior IT architect charges £600/day, 220 days = £132,000 contract. Outside IR35. The contractor maximises tax efficiency with a £20,000 company pension contribution.
Limited Company (outside IR35) with pension
| Item | Annual amount |
|---|---|
| Gross revenue | £132,000 |
| Less director salary £12,570 | (£12,570) |
| Less employer NI on salary | (£1,136) |
| Less employer pension contribution | (£20,000) |
| Less accountancy + insurance + subs | (£2,800) |
| = Profit before corporation tax | £95,494 |
| Corporation tax (25% less marginal relief) | (£21,557) |
| = Distributable dividends | £73,937 |
| Tax on dividends | (£15,485) |
| Net cash + £20k pension pot | £71,022 cash + £20,000 pension |
| Total compensation value | £91,022 |
Umbrella PAYE (no equivalent pension flexibility)
Umbrella net take-home: roughly £76,500 cash + £3,300 auto-enrolment pension = £79,800 total. The £11,200 difference between Ltd and umbrella widens to £15,000+ once pension contributions are added on the Ltd side, because the umbrella contractor cannot contribute employer-side without the umbrella's cooperation (and most umbrellas allow only modest salary-sacrifice pension, not employer-side).
The Managed Service Company (MSC) trap
The Managed Service Company legislation in Chapter 9 ITEPA 2003 was enacted in 2007 to combat composite scheme arrangements where 'MSC providers' marketed turnkey contractor companies with pooled trading, free incorporation, free accountancy and aggressive dividend extraction. Where HMRC determines a company is an MSC, three consequences follow:
- All payments to the worker are reclassified as employment income, taxed under PAYE with employer and employee NI.
- The interest, penalties and back-tax can extend across multiple historic years subject to standard discovery time limits.
- The transfer-of-debt provision in s688A ITEPA 2003 allows HMRC to recover unpaid tax from the company directors personally, the MSC provider, and (where the original company is insolvent) even the recruitment agency and end client.
The Churchill Knight and CK Partners cases
In 2023, the First-tier Tribunal in Churchill Knight & Associates Ltd v HMRC and CK Partners Ltd v HMRC (heard together) found that two large contractor accountancy firms had crossed the line into being MSC providers because they:
- Influenced or controlled the level of director salary and dividend payments
- Provided benefits-in-kind valuations and tax planning advice as part of a tiered fee package
- Standardised company structures across thousands of contractor clients
- Charged fees structured as a percentage of contract value rather than a fixed accountancy fee
HMRC issued PAYE assessments against the underlying contractor companies (Regulation 80 determinations) totalling in some cases £40,000+ of back-tax per contractor. The transfer-of-debt provision then sought to recover the tax from the MSC providers themselves. The ruling is currently subject to appeal but contractors using firms with similar fee structures have received pre-MSC notices throughout 2024-2026.
What expenses can you claim through a limited company?
Section 336 ITEPA 2003 requires expenses to be incurred 'wholly, exclusively and necessarily' for business purposes to be tax-deductible. Through a PSC outside IR35, the following are typically allowable:
| Expense category | Allowable? | Notes |
|---|---|---|
| Accountancy fees | Yes | £100-£200/month typical; ACA/ACCA-qualified |
| Business insurance (IPSE/Hiscox/Markel) | Yes | £250-£600/year; PI, PL, EL combined |
| Business mileage (HMRC AMAP) | Yes | £0.45/mile first 10k, £0.25 thereafter |
| Subsistence on business travel | Yes (with limits) | HMRC benchmark scale rates apply |
| Hotels on business travel | Yes | Beyond commute distance; 24-month rule |
| Pension contributions | Yes (within annual allowance) | £60,000/year, tapered if income > £260k |
| Professional subscriptions on HMRC List 3 | Yes | BCS, IET, IEEE, CIPD etc. |
| Training relevant to current role | Yes | NOT new-skill training to launch new career |
| Home office (flat £6/week) | Yes | HMRC simplified rate; receipts not required |
| Mobile phone (contract in company name) | Yes | Must be company contract not personal |
| Equipment (laptop, monitor) under £1,000 | Yes | Full deduction in year of purchase |
| Equipment over £1,000 | Yes (capital allowance) | Annual Investment Allowance up to £1m |
| Childcare vouchers (legacy scheme) | No (closed Oct 2018) | Use government Tax-Free Childcare instead |
| Commuting from home to client | No (24-month rule) | Becomes taxable benefit after 24 months |
The 24-month rule on business travel
Under Section 339 ITEPA 2003, travel to a workplace is only allowable if it is not a 'permanent workplace'. A workplace becomes permanent when the contractor reasonably expects to attend it for more than 24 months AND the attendance constitutes a significant proportion of the working time. Once that threshold is crossed (or is foreseeably going to be crossed), all travel costs become taxable. Many contractors structure their contracts to rotate between client sites or break the 24-month attendance, preserving the deductibility of travel.
Inside IR35: why umbrella wins
When a contract is determined as inside IR35, the fee-payer (typically the recruitment agency) must operate PAYE on the deemed-employment income before paying the PSC. This means: from the contract value, the fee-payer first deducts employer NI (15%), apprenticeship levy (0.5%), then PAYE income tax and employee NI on the residue, and pays only the net amount to the PSC. The PSC receives roughly £64,500 net on a £110,000 contract — leaving essentially nothing for dividends.
Running a PSC inside IR35 incurs all the costs of a Ltd company (accountancy £1,800/year, Companies House fees £15 confirmation statement, business insurance, corporation tax administration, VAT if registered) with none of the tax advantages. The arithmetic strongly favours umbrella for inside-IR35 work:
| Aspect | Umbrella (inside) | Ltd PSC (inside) |
|---|---|---|
| Net annual take-home | £64,961 | £64,800-£65,200 |
| Annual admin time | 15-30 mins (verify payslip) | 4-8 hours (accounts, corp tax) |
| Annual admin cost | £0 (umbrella margin only) | £1,800-£2,400 accountancy |
| Statutory sick pay | Yes | No (sole employee, no qualifying conditions) |
| Statutory holiday pay | Yes (12.07% accrual) | No |
| Auto-enrolment pension | Yes (3% min employer) | Self-managed |
| P45 on contract end | Yes | No (P45 only when employment ceases) |
| UC/JSA eligibility on gap | Treated as employee | Self-employed treatment, more restrictive |
The decision is generally to keep an existing Ltd dormant (file Companies House dormant accounts AA02, file CT600 dormant return) and use umbrella for inside-IR35 work, ready to reactivate the Ltd if an outside-IR35 contract surfaces. Strike-off via Form DS01 is a last resort because reincorporation has set-up costs and breaks any continuous trading history.
Choosing between umbrella providers
Not all umbrellas are equal. Six factors should drive your choice:
- Accreditation: FCSA membership (audited annually) or Professional Passport accreditation. Both impose minimum standards on PAYE compliance, holiday pay accrual, and contract clarity.
- Margin: £15-£35 per week. Larger umbrellas (Giant, Parasol, NASA, Brookson, Workwell) typically offer £18-£22; boutique providers may charge £25-£30 with additional services.
- Pension flexibility: Default auto-enrolment is 3% employer/5% employee. Best-in-class umbrellas allow up to 100% salary sacrifice into pension, capped at the £60,000 annual allowance.
- Same-day payments: Some umbrellas pay weekly on Friday matched to the agency's Friday remittance; others batch to month-end. Cashflow matters for short contracts.
- Tax avoidance red flags: Any umbrella claiming '85% take-home' or 'loan scheme'-style structures is offering disguised remuneration — appears regularly on the HMRC named-schemes list. Avoid.
- Contract transparency: Reputable umbrellas issue a written 'Key Information Document' (KID) before signup as required by the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (as amended 2020). Read it.
Frequently asked questions
What is the difference between umbrella and limited company for UK contractors?
Umbrella: PAYE employee of the umbrella, NI & tax deducted from rate by the umbrella, simpler tax (just a payslip). Limited Company: own private company, take £12,570 salary plus dividends (8.75-39.35%) after corporation tax (19-26.5%), no NI on dividends. Outside IR35 Ltd typically saves 5-12%; inside IR35 the routes are equivalent.
What is IR35 and how does it affect umbrella vs Ltd choice?
IR35 is HMRC's off-payroll working legislation that decides whether a PSC contractor is genuinely self-employed or a 'disguised employee' for tax. Inside IR35 forces PAYE-equivalent tax through the PSC, eliminating the dividend advantage. Outside IR35 keeps the Ltd route tax-efficient. The end client (not the contractor) makes the determination for medium/large private clients.
How much will I take home on a £500/day rate?
Outside IR35 through a Ltd: about £70,200/year on 220 days. Through umbrella: about £65,500. Inside IR35 through either route: about £64,500-£65,000. The Ltd advantage outside IR35 is around £4,700/year, growing with pension contributions and higher rates.
What is the Managed Service Company (MSC) legislation?
Chapter 9 ITEPA 2003 catches turnkey contractor arrangements where a third-party 'MSC provider' controls multiple PSCs. HMRC reclassifies all income as PAYE-taxable and transfers debts to directors and the MSC provider. The 2023 Churchill Knight / CK Partners cases extended MSC scope to accountancy firms with tiered or pooled fee structures.
What is the SDC test?
Supervision, Direction and Control — the test of whether someone tells the worker how, what, when and where to work. Presence of SDC indicates employment-like working. Outside IR35 requires absence of SDC plus other indicators (substitution right, financial risk, no integration).
Can I switch between umbrella and Ltd mid-contract?
Possible but messy. Easiest at contract renewal. Within a contract requires agency and client agreement and re-signing terms. Tax considerations include lost holiday pay, statutory rights, and PAYE coding adjustments. Generally avoid mid-contract switching except where IR35 status formally changes.
What expenses can I claim through a Ltd vs umbrella?
Umbrella: very few since 2016 T&S rules — only direct equipment and mandatory training. Limited Company outside IR35: business travel (24-month rule), accommodation, subsistence, mileage £0.45/mile, pension up to £60k, accountancy, insurance, professional subscriptions on HMRC List 3, equipment under £1k full deduction, equipment over £1k via Annual Investment Allowance.
What is the apprenticeship levy?
0.5% UK employer payroll tax for payroll bills over £3m/year. Umbrellas always pay it. The 0.5% is deducted from your contract value before gross pay is calculated. On a £500/day rate it costs you £2.50/day or £550/year. A one-person Ltd under the £3m threshold does not pay the levy.
Should I use umbrella or Ltd if my contract is inside IR35?
Umbrella, almost always. Inside IR35 through a Ltd forces PAYE deductions before money reaches the PSC, eliminating dividend efficiency while keeping all the admin cost. Umbrella matches the inside-IR35 tax position within £100-£200, with statutory employment benefits added.
How much can I pay into a pension through Ltd vs umbrella?
Limited Company outside IR35: up to £60,000/year as an employer contribution (annual allowance, tapered if income > £260k). Fully corporation tax deductible. Umbrella: usually limited to auto-enrolment defaults (3% employer, 5% employee), though some umbrellas allow salary-sacrifice up to the annual allowance. Ltd offers materially more flexibility.
What is the dividend allowance?
£500 in 2026/27 (down from £2,000 in 2022/23). The first £500 of dividend income is tax-free. Beyond that: 8.75% basic rate, 33.75% higher rate, 39.35% additional rate. Applied AFTER the personal allowance, not in addition.
What is the corporation tax marginal relief band?
For profits £50,001-£250,000, corporation tax is 25% minus a marginal relief calculated as 3/200 × (£250,000 - profit). Effective rate within the band is approximately 26.5%. Profits up to £50k are 19% (small profits rate); profits above £250k are 25% (main rate).
Are umbrella companies regulated?
Not directly, currently. Government consultation December 2023 indicated statutory regulation is coming. Industry accreditation via FCSA or Professional Passport provides the strongest current assurance. Employment Agency Standards Inspectorate has jurisdiction over umbrellas-as-employment-intermediaries. HMRC monitors and publishes a named-schemes list — always check before signing up.
Glossary
- AIA (Annual Investment Allowance): 100% capital allowance on qualifying plant & machinery up to £1m/year.
- AMAP (Approved Mileage Allowance Payment): HMRC approved mileage rate £0.45/mile first 10k, £0.25 thereafter.
- CEST: HMRC's Check Employment Status for Tax online tool.
- Chapter 8 / Chapter 10 ITEPA: The two IR35 regimes — Chapter 8 (PSC self-assesses), Chapter 10 (client assesses).
- CT600: The corporation tax return form.
- Director's loan: A loan taken from the company by the director; subject to s455 tax if not repaid within 9 months of accounting period end.
- Dividend allowance: £500 tax-free band on dividend income (2026/27).
- FCSA: Freelancer & Contractor Services Association — umbrella accreditation body.
- IR35: Off-payroll working rules in Chapters 8 & 10 of Part 2 ITEPA 2003.
- ITEPA 2003: Income Tax (Earnings and Pensions) Act 2003 — foundational statute for employment tax.
- KID (Key Information Document): Mandatory pre-contract disclosure for umbrella/agency workers.
- MoO: Mutuality of Obligation — IR35 test of whether parties must offer/accept work.
- MSC: Managed Service Company — anti-avoidance regime in Chapter 9 ITEPA 2003.
- P45 / P60: P45 issued on employment end; P60 issued at tax year end.
- PSC: Personal Service Company — a one-person Ltd company providing professional services.
- SDC: Supervision, Direction and Control — employment status test.
- SDS: Status Determination Statement issued by the end client under Chapter 10 IR35.
- Section 24: Finance (No.2) Act 2015 mortgage interest relief restriction for landlords.
- Section 336: ITEPA 2003 provision allowing employment expenses if wholly, exclusively and necessarily incurred.
- SPV: Special Purpose Vehicle — limited company set up for a specific purpose, often property.
- T&S rules: Travel and subsistence rules under s339A ITEPA, restricting umbrella expense claims.
Related calculators on UK Calculator
Official UK Sources
- GOV.UK — IR35 off-payroll working rules
- HMRC Employment Status Manual (ESM)
- HMRC CEST tool — Check Employment Status for Tax
- GOV.UK — Corporation tax rates and allowances
- GOV.UK — Income tax personal allowance & rates
- GOV.UK — Named tax avoidance schemes
- FCSA — Freelancer & Contractor Services Association
- IPSE — Association of Independent Professionals and the Self-Employed
- ContractorUK — industry resource
- ACCA — Association of Chartered Certified Accountants
- Companies House — find & update company information
- GOV.UK — Employment Agency Standards Inspectorate
Calculator verified against HMRC Employment Status Manual, ITEPA 2003 Chapters 8-10, corporation tax marginal relief rules, and current FCSA umbrella standards. Last reviewed: 25 May 2026. This page is for general guidance only and is not tax advice. Always consult a qualified ACA/ACCA/CIOT accountant before making contracting structure decisions.
About this calculator
Last updated 25 May 2026 by Mustafa Bilgic, independent operator of UK Calculator (Adıyaman, Turkey — see About). Figures cross-checked against published HMRC tax bands for 2026/27, the Income Tax (Earnings and Pensions) Act 2003 Chapters 8-10, the Apprenticeship Levy regulations, and IR35 case law from Atholl House Productions Ltd v HMRC (Court of Appeal 2022) and Kickabout Productions Ltd v HMRC (Upper Tribunal 2020). Corporation tax calculations use the official marginal relief formula at 3/200 fraction. This is general information only and does not constitute tax advice. Always consult a qualified ACA/ACCA/CIOT accountant before making structural decisions; IR35 status determinations should be sought from specialist firms including Qdos, Markel Tax, Bauer & Cottrell or IR35 Shield.