Contractor Calculator
Instantly calculate your take-home pay from your day rate. Free, accurate UK tool comparing Umbrella Company (Inside IR35) and Limited Company (Outside IR35) net income.
Calculate Your Take-Home Pay
Enter your day rate, working pattern, and contract arrangement to get an instant, personalised estimate of your net contractor income after tax and deductions.
Contract Details
Enter your contracting figures in GBP (£) to calculate take-home pay
Take-Home Evaluation
Calculated net pay after tax, NI, and contract deductions
Contractor Working Arrangements Compared
A general comparison of the main ways UK contractors get paid, to help you understand the trade-offs beyond just take-home pay.
| Arrangement | Typical Take-Home | Admin Burden | Best For |
|---|---|---|---|
| Umbrella Company | ~60–68% | Very low | Inside IR35 contracts, first-time contractors |
| Limited Company | ~70–80% | Higher (accounts, VAT, filings) | Outside IR35 contracts, longer-term contracting |
| Sole Trader / Freelancer | ~65–75% | Moderate (self-assessment) | Small clients, direct freelance work |
Contractor Pay FAQ
Everything you need to know about contractor take-home pay, IR35, and choosing a working arrangement.
IR35 is UK tax legislation that determines whether a contract counts as employment for tax purposes. Contracts deemed “Inside IR35” are taxed like employment through an umbrella company, while contracts “Outside IR35” allow contractors to operate through their own limited company and typically retain more take-home pay via dividends.
A Limited Company generally offers a higher take-home percentage if your contract is genuinely Outside IR35, thanks to dividend tax rates being lower than income tax and National Insurance. An Umbrella Company is simpler administratively and is required for contracts deemed Inside IR35.
Multiply your day rate by the number of days you expect to work per week, then by the number of weeks you expect to work in the year (typically 44 to 46 to allow for holidays and gaps between contracts). This gives your gross annual contracting income before tax.
Under an umbrella company, your assignment rate has employer’s National Insurance, the Apprenticeship Levy, and the umbrella’s margin deducted first. What remains is then taxed as employment income through PAYE, including employee National Insurance.