About Contractor Pay Calculator
Day rate to take-home for UK contractors, inside IR35 through an umbrella or outside through a limited company, with every rate sourced.
What is on this site
One question, "contractor pay calculator", answered with a calculator that works on the page with no account, 4 guides on the questions around it, a data table you can cite (the figures and their method), and the sources every figure rests on.
- Inside vs outside IR35: what the difference costs you: Inside IR35 means umbrella pay with employer NI funded from your rate; outside means salary plus dividends via your company. At £500/day the gap is about £4,188 a year.
- Umbrella take-home pay: where your day rate goes, line by line: An umbrella deducts its margin, employer NI at 15% and the 0.5% levy from your rate before PAYE starts. The full waterfall for £500/day, with sourced 2026/27 rates.
- Outside IR35 take-home: the limited company math: Outside IR35, a £500/day contract yields about £72,293 a year: £12,570 salary, corporation tax 19–26.5%, dividends taxed at 10.75–39.35%. The calculation, step by step.
- Day rate to salary: what your contract is worth as a permanent job: £500/day inside IR35 works out to roughly a £99,000 salary before benefits. Conversion table both ways, and what permanent benefits are worth on top.
Reach us
Contact for a question about the site, or enquiries@contractorpaycalculator.co.uk. The legal terms are on Terms and Privacy.
Contractor Pay Calculator is an independent information site operated by Ellul Solutions Ltd. It is not affiliated with HMRC or any government body, and nothing here is tax, accounting or financial advice. Figures are estimates built on stated assumptions, confirm your own position with an accountant or your umbrella company before making decisions.