Contractor Take-Home Calculator (2026/27)

How this is calculated

This calculator turns your day rate into an annual contract value (day rate × days per week × weeks worked), then models what an outside-IR35 contractor working through their own limited company actually keeps. If you need to compare being inside versus outside IR35, use our IR35 calculator instead — this page assumes you are already outside IR35.

The contract income becomes company profit. We take a tax-efficient £12,570.00 director's salary (a deductible cost), add employer's National Insurance, charge Corporation Tax on the remaining profit, then draw the rest as dividends taxed on your personal return. What's left after income tax, National Insurance and dividend tax is your take-home — the same engine as our dividend-vs-salary calculator.

Assumptions

• Illustration only, with no expenses, no pension and no other income. Real take-home depends on your costs and circumstances.
• A single-director company on a £12,570.00 salary, with no Employment Allowance (a sole director-employee can't claim it).
• All distributable profit after Corporation Tax is drawn as dividends in the same year.
• England, Wales & Northern Ireland rates (2026/27); Scotland's income-tax bands differ.

Rates used (2026/27)

• Income tax: Personal Allowance £12,570.00; 20% / 40% / 45% bands.
• National Insurance: employee 8% then 2%; employer 15% above £5,000.00.
• Dividend tax: £500.00 allowance, then 10.75% / 35.75% / 39.35%.
• Corporation Tax: 19% to £50,000.00, 25% from £250,000.00, Marginal Relief between.

This is an illustration for information only — not tax, accounting or financial advice. Check with an accountant before acting.