Contractor Take-Home Calculator.
Working outside IR35 through your own limited company? Enter your day rate to estimate your annual take-home pay after corporation tax and dividend tax.
Your contract
Assumes an outside-IR35 limited company, a £12,570 director’s salary, and all remaining profit taken as dividends (2025/26 rates).
Enter your day rate to estimate your annual take-home pay.
How contractor take-home works
A contractor working outside IR35 through their own limited company usually takes a small, tax-efficient salary — around the personal allowance of £12,570 — and draws the rest of their income as dividends. The company pays corporation tax on its profits first; you then pay dividend tax personally on what you draw.
Because dividends are taxed at lower rates than salary and carry no National Insurance, this structure typically leaves an outside-IR35 contractor with 55–75% of their contract income, depending on their day rate and expenses. The higher your income, the more of your dividends fall into the 33.75% band — which is why the take-home percentage falls as the day rate rises.
Where the numbers come from
Frequently Asked Questions
What does this contractor calculator assume?
It models a contractor working outside IR35 through their own limited company for the 2025/26 tax year, taking a tax-efficient director’s salary of £12,570 plus dividends, and distributing all remaining post-tax profit as dividends. It applies corporation tax (including marginal relief), the £500 dividend allowance, and the 8.75% / 33.75% / 39.35% dividend rates. It is an estimate — your real position depends on your exact salary strategy, pension contributions, other income, and IR35 status.
What if I am inside IR35?
Inside IR35, the tax advantage of a limited company largely disappears — your fee-payer deducts income tax and National Insurance broadly as if you were employed, so your take-home is closer to a salaried equivalent. This calculator models the outside-IR35 position. If you are unsure of your status, we review contracts and working practices and give you a documented opinion.
Could I take home more than this shows?
Often, yes. Pension contributions made through your company reduce corporation tax and can be very efficient; the exact salary level, timing of dividends across tax years, and claiming every allowable expense all move the number. Optimising this properly, each year, is exactly where a contractor accountant earns their fee.
Related: Contractor Accountants, our IR35 guide, and the CIS tax refund calculator.
Keep more of what you earn.
We structure contractor pay efficiently and handle it all — company accounts, dividends, IR35, and self-assessment.
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