LimitedCompanyTaxCalculator
Updated for 2026/27

Day rate tax calculator, limited company

Enter your contract day rate, billable days and annual expenses to estimate company profit, then see corporation tax, salary, dividends and personal take-home in one view.

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

Calculate company tax Read the guides
Day rate to profitExpenses deductedCorp tax estimatePersonal take-home
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Personal take-home is based on salary and dividends withdrawn. Post-tax profit not withdrawn is retained company cash.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%
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Quick answer

Convert your contractor day rate to company profit and calculate corporation tax, dividends and take-home pay 2026/27. See the full tax picture from day rate to pocket.

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

Day rate tax calculator, limited company: what it covers

This calculator converts a day rate into an annual take-home estimate, and the single biggest assumption is how many days you actually bill. The chain is simple: day rate multiplied by billable days per week, multiplied by the number of weeks you work, gives annual turnover. Subtract expenses to reach profit, then apply the tax layers: corporation tax (19% to £50,000, 25% above £250,000, marginal relief between), a £12,570 director's salary, and dividends taxed at 10.75%, 35.75% and 39.35% after the £500 allowance.

The billable-weeks figure is where headline day rates become misleading. A year has 52 weeks, but after holiday, bank holidays, illness, admin and gaps between contracts, many contractors bill closer to 44–46 weeks. Assuming a full 52 overstates turnover and every tax figure that follows. It is worth modelling a conservative week count as well as an optimistic one.

Comparing two day rates fairly means holding weeks and expenses constant, then reading net take-home rather than gross turnover, because dividends above £50,270 cross into 35.75%. This is an estimate, not personal tax advice.

Common questions

Day rate tax calculator, limited company — FAQs

How many billable weeks should I assume in a year?
Be realistic rather than optimistic. From 52 weeks, subtract holiday, bank holidays, likely sick days, and time between contracts. Many contractors settle on roughly 44 to 46 billable weeks. Because turnover and every tax layer scale directly with this number, an over-generous assumption inflates the whole result, so it is sensible to test a cautious figure too.
How do I compare a higher day rate on a shorter contract with a lower rate on a longer one?
Convert both to annual take-home using the same expenses and a realistic total number of billable weeks across the year, including any gap between contracts. A high rate for three months can lose to a modest rate for twelve once idle weeks are counted. Compare net take-home, not the headline day rate.
Does a higher day rate always mean proportionally more take-home?
No. As profit grows, more dividends fall above £50,270 and are taxed at 35.75% instead of 10.75%, and higher profits move the company toward the 25% corporation tax territory via marginal relief. Take-home still rises with the day rate, but each extra pound is taxed more heavily, so the increase is less than proportional.
Should VAT change how I read my day rate?
VAT sits on top of your day rate and is not your income; you collect it and pass it to HMRC. But note that a full-time day rate pushes annual turnover past the £90,000 VAT registration threshold quickly, so factor registration into your planning even though VAT itself does not increase your take-home.
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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.
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What a limited company can legitimately deduct as business expenses, reducing corporation tax. Covers running costs, director expenses, travel, equipment, and home office claims.
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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.
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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.