LimitedCompanyTaxCalculator
Updated for 2026/27

Contractor take-home pay calculator 2026/27

The bottom line for limited company contractors: from contract day rate or annual profit, what do you actually keep after corporation tax, salary taxes, employer NI and dividend tax?

Updated for 2026/27. Uses UK corporation tax, dividend tax and PAYE assumptions. Estimates only — not tax advice.

Calculate company tax Read the guides
Net take-homeAll tax layersDay rate inputAnnual summary
2026/27 tax year Company profit to personal take-home Salary plus dividends Retained cash shown

Limited company tax calculator

Company tax estimate

Adjust inputs below — results update instantly.

Tax year 2026/27
How do you want to enter company income?
£

Enter profit before director salary, pension contributions and corporation tax.

£

Annual profit used in calculations = monthly profit × 12.

£
£
Expenses exceed estimated turnover — check your inputs.
£
£
Expenses exceed estimated turnover — check your inputs.
£
£

Amount you plan to withdraw from available post-tax company profit.

Selected dividends exceed available post-tax company profit.
£
£
£47,874 personal take-home / year £3,989/mo
Personal take-home is based on salary and dividends withdrawn. Post-tax profit not withdrawn is retained company cash.
Monthly net
£3,989
Total tax
£18,325
Effective rate
24.4%
Personal take-home£47,874
Dividend tax£4,696
Employer NI£1,136
Corporation tax£12,493
Company pension£0
Retained company cash£8,801
Show detailed breakdown ▼
Director salary£12,570.00
Employer National Insurance£1,135.50
Corporation tax£12,493.04
Salary income tax£0.00
Employee National Insurance£0.00
Dividend tax£4,696.25
Retained company cash£8,801.46
Personal take-home£47,873.75
Effective tax rate24.43%
Share this result
Selling shares, property or crypto?
Work out the capital gains tax with the Capital Gains Tax Survival Pack — £4.99 →
HMRC 2026/27 · Methodology
Want a website like this one? Modern websites and custom calculators for UK businesses. No calls, no meetings. From £395. See examples & prices →
Quick answer

Calculate a limited company contractor's net take-home pay 2026/27. Day rate or annual profit to final pocket money after corporation tax, NI and dividend tax.

Updated for 2026/27. Written and reviewed by James Whitfield against current GOV.UK and HMRC guidance · Editorial standards · Methodology. Estimates for planning only — not tax, accounting or financial advice.

Figures reviewed for the 2026/27 tax year (last updated July 2026). Source: GOV.UK.

About this calculator

Contractor take-home pay calculator 2026/27: what it covers

This calculator turns a contractor's day rate into an estimated annual take-home figure through a limited company. It works in stages: your day rate multiplied by the days and weeks you expect to bill gives turnover; deduct business expenses to reach profit; the company pays corporation tax on that profit (19% up to £50,000, 25% above £250,000, with marginal relief in between at an effective 26.5%); and what remains is extracted as a low salary plus dividends.

Most contractors take a director's salary around £12,570 to use the full Personal Allowance, then draw the rest as dividends from post-corporation-tax profit. Dividends carry no National Insurance and use the £500 dividend allowance, with tax at 10.75%, 35.75% and 39.35% across the bands. That salary-plus-dividend mix is why an outside-IR35 limited company contractor typically keeps more than an employee on the same headline figure.

The key variable is whether you extract everything or retain some profit in the company. Money left in the business has still paid corporation tax but no dividend tax, so retaining a buffer and drawing it in a later, lower-income year can smooth your personal tax. This tool estimates only; it is not personal tax advice.

Common questions

Contractor take-home pay calculator 2026/27 — FAQs

Does the limited company route still beat an umbrella if I'm inside IR35?
Usually not. When a contract is caught by IR35 (off-payroll working), the fee is treated much like employment income, taxed through PAYE with employee and employer National Insurance, so the dividend advantage largely disappears. For inside-IR35 work an umbrella arrangement often produces a similar or simpler outcome. The limited company take-home advantage mainly applies to genuinely outside-IR35 contracts.
What take-home percentage of my day rate should I expect?
It depends on rate, expenses and extraction, so treat any single figure with caution. Outside IR35, a limited company contractor extracting most profit commonly keeps a meaningfully higher share than an employee once the low salary and dividend mix is applied. Enter your own numbers rather than relying on a rule of thumb.
Should I extract all my profit each year?
Not necessarily. Retained profit has already paid corporation tax but no dividend tax. Leaving a buffer and drawing it in a year when your total income is lower can reduce the dividend tax you pay, since higher dividends above £50,270 attract 35.75%. Extracting everything every year can push you into higher dividend rates unnecessarily.
Is the salary counted in my take-home?
Yes. Take-home combines your net salary and your net dividends. A £12,570 salary is free of income tax and employee NI for you, and it reduces company profit before corporation tax, so it forms the tax-efficient base of the extraction before dividends are added on top.
Power tools

More calculators

Limited Company Tax Calculator UK 2026/27
Calculate corporation tax, director salary, employer NI, dividend tax and personal take-home from a UK limited company. 2026/27 rates. Free online tool.
Corporation Tax Calculator UK 2026/27 | 19% or 25%?
Calculate corporation tax 2026/27: 19% on profits up to £50,000, 25% above £250,000, marginal relief between. Enter profit after salary to see your exact bill.
Salary vs Dividend Calculator UK 2026/27
Compare salary vs dividends for UK limited company directors 2026/27. Find the optimal split to minimise NI, corporation tax and personal income tax. Free calculator.
Director Salary Calculator 2026/27 | £5,000 vs £12,570
Director salary calculator 2026/27: see the true cost of £5,000 vs £12,570 salary, employer NI, income tax saved, corporation tax impact and net take-home effect.
Dividend Tax Calculator UK 2026/27 | Ltd Company
Calculate dividend tax 2026/27: £500 allowance, then 10.75% basic rate, 35.75% higher rate, 39.35% additional rate. Shows how salary and dividends interact.
Available Dividends Calculator | How Much Can I Pay?
Calculate how much profit is available for dividends 2026/27 after director salary, employer NI, company pension and corporation tax. Shows distributable pool clearly.
Retained Profit Calculator | Ltd Company 2026/27
See how much post-tax profit stays in your limited company after salary and dividend extraction 2026/27. Model different extraction levels and retained cash.
Director Take-Home Pay Calculator UK 2026/27
Calculate a company director's net take-home pay 2026/27. Salary plus dividends minus income tax, NI and dividend tax. See your actual personal income after all taxes.
Practical guides

Limited company guides

Limited Company Tax in Scotland 2026/27
Corporation tax is UK-wide and unaffected by Scottish income tax. But directors taking salary and dividends are subject to Scottish income tax rates, which differ from rUK. This guide explains how.
Corporation Tax 2026/27: 19% to 25% Rates Explained
Corporation tax is 19% on profits up to £50,000 and 25% above £250,000 for 2026/27, with marginal relief (~26.5%) in between. See which rate applies to your company and how salary and pension choices change your bill.
Optimal Salary and Dividend Split for Directors 2026/27
How to calculate the tax-efficient salary and dividend combination for a limited company director in 2026/27, covering corporation tax, income tax, NI and the dividend allowance.
Director Loan Accounts Explained: Tax Implications for 2026/27
A director loan account (DLA) tracks money owed between a director and their company. This guide covers how DLAs work, when they attract tax charges, and how to manage them.
Limited Company Allowable Expenses: A Practical Guide 2026/27
What a limited company can legitimately deduct as business expenses, reducing corporation tax. Covers running costs, director expenses, travel, equipment, and home office claims.
Limited Company vs Sole Trader: Full Tax Comparison 2026/27
A detailed comparison of limited company and sole trader structures on net income, administrative complexity and risk. Includes worked examples at £40k, £60k and £100k profit levels.
Limited Company Tax Calculator UK 2026/27
Calculate corporation tax, director salary, employer NI, dividend tax and personal take-home from a UK limited company. 2026/27 rates. Free online tool.
Corporation Tax Calculator UK 2026/27 | 19% or 25%?
Calculate corporation tax 2026/27: 19% on profits up to £50,000, 25% above £250,000, marginal relief between. Enter profit after salary to see your exact bill.
Salary vs Dividend Calculator UK 2026/27
Compare salary vs dividends for UK limited company directors 2026/27. Find the optimal split to minimise NI, corporation tax and personal income tax. Free calculator.
Director Salary Calculator 2026/27 | £5,000 vs £12,570
Director salary calculator 2026/27: see the true cost of £5,000 vs £12,570 salary, employer NI, income tax saved, corporation tax impact and net take-home effect.
Dividend Tax Calculator UK 2026/27 | Ltd Company
Calculate dividend tax 2026/27: £500 allowance, then 10.75% basic rate, 35.75% higher rate, 39.35% additional rate. Shows how salary and dividends interact.
Available Dividends Calculator | How Much Can I Pay?
Calculate how much profit is available for dividends 2026/27 after director salary, employer NI, company pension and corporation tax. Shows distributable pool clearly.
AfterTaxSalary.co.uk
Use the PAYE salary tool when you want a pure employee baseline outside the company structure question.
EmployerCalculator.co.uk
Useful for isolating employer NI and payroll cost effects when director salary is the main planning variable.
UKBenefitsCalculator.co.uk
Relevant when household benefits planning sits alongside company extraction decisions.
HomeBuyingCosts.co.uk
Helpful once business take-home is being translated into a housing budget and buying costs plan.
Getting set up

Business bank accounts

A limited company must keep its finances separate from personal accounts. These accounts are free to open.

Starling Business
Permanently free, no monthly fee. A fully licensed UK bank - deposits up to £85,000 are FSCS protected. Accepts limited companies and sole traders. 0.7% on Post Office cash deposits.
Open an account →
Tide
Free to open. Built-in invoicing and expense tracking. 20p per outgoing transfer on the free tier (Tide Plus is £9.99/month). Funds are safeguarded as e-money, not FSCS protected. Usually has a new-account offer.
Open an account →
Mettle by NatWest
Free. Single-director limited companies only (max two owners, one account user). Includes FreeAgent bookkeeping at no extra cost. Funds are safeguarded as e-money, not FSCS protected. No cash deposits.
Open an account →
Registering at Companies House

Companies House now charges £100 to register a limited company online (up from £50 in February 2026). Same-day digital registration is £156. You can register directly at gov.uk or through a formation agent.