Plan deemed employment payment scenarios for IR35 and off-payroll working, with links to official HMRC guidance.
A deemed employment payment is what an intermediary has to treat as employment income when an engagement is caught by the off-payroll rules and the intermediary itself carries the tax. It starts from the fees received for the engagement, takes off the deductions the rules allow and the employer National Insurance due on the balance, and what is left is taxed as though it were salary through PAYE.
On £35,000 a year with a standard 2026/27 tax code, no pension, no student loan, the figures work out like this. Open a calculator to put your own numbers in.
| Tax/source year | 2026/27 |
|---|---|
| Region | England/Wales/Northern Ireland |
| Tax code basis | 1257L where the page uses PAYE defaults |
| Pension basis | No pension deduction unless this example says otherwise |
| Student loan basis | No student loan unless selected in this example |
| What is not decided here | PayBreakdown does not decide payroll correctness, lender approval, benefit entitlement or employer compliance, and does not give regulated financial, mortgage, debt, tax, payroll or legal advice. |
|---|
The figures on this page are worked from deemed payment, using the values below. Open the calculator if your example salary differs.
The deemed-employment payment shown here follows the published HMRC steps and goes no further. PayBreakdown does not decide the deemed employer, fee-payer duties or a final deemed-payment calculation.
Contractor outputs are scenario estimates only. PayBreakdown does not decide IR35 status, umbrella compliance, employment status, legal position, tax filing duties, or the best provider structure.
This estimate is worked out on £35,000 annual gross. Change any of those and the take-home figure moves; pension method and student loan plan usually move it most. A payslip can differ from any calculator because payroll works pay period by pay period, so a tax-code change, a bonus, arrears or a refund can land in one month and not the next. See how each deduction is worked out.
No. PayBreakdown does not decide IR35 status and does not replace CEST. Status can be contract-by-contract and may depend on contract terms and actual working practices.
Not in full. Working out what a limited company actually leaves you with means Corporation Tax on the profit first, then the split between a small salary and dividends, and then dividend tax on top — before VAT treatment, allowable expenses, pension contributions and accountancy fees are accounted for. The director salary and dividend calculator covers the salary-and-dividend part; the rest depends on your own accounts.
No. Umbrella estimates are planning estimates only. Real pay can differ because of the umbrella margin, holiday-pay treatment, pension, student loans, payroll period, expenses and provider-specific deductions.
No. It is not tax, legal, employment, accounting, payroll or financial advice. Check official GOV.UK sources, HMRC CEST, payroll, agency or professional guidance where needed.
Last updated 2026-08-27. Checked by Sean Elsmore. Rates last checked against GOV.UK on 2026-08-07. Estimates are for planning and should be checked against official records where the decision matters.