Contractor Salary Calculator UK
Find your most tax-efficient pay mix as a UK limited company contractor. Model your director's salary, dividends and retained profit for the 2025/26 tax year and see exactly how much take-home pay you'll keep.
Designed for outside IR35 contractors operating through a Ltd company. Inside IR35? Use the Inside IR35 Calculator.
Money Tools UK
Contractor Calculator (Outside IR35)
Estimate take-home pay for UK contractors operating through a limited company outside IR35.
Between 1 and 52 weeks.
Typical tax-efficient director salary.
Equipment, software, travel, insurance, etc.
Employer pension paid directly from the company.
Adds a small surplus from the flat-rate VAT difference.
Profit Distribution
Choose how much after-tax company profit to pay out as dividends.
Distributed
100%
Dividends paid: £69,234
Retained in company: £0
Many contractors retain some profits inside the company to improve long-term tax efficiency, cash flow and future investment flexibility.
Estimated annual take-home pay
£67,907
Effective retention is on the low side — review salary, expenses and pension levers.
Monthly
£5,658.88
Salary
£12,570
Dividends
£69,234
Corporation tax
£19,860
Marginal relief
Dividend tax
£13,898
Business expenses
£7,200
Pension
£5,000
Student loan
£0
Retained profit
£0
Income & tax breakdown
How your contract income flows from company turnover to personal take-home.
| Annual contract incomeContract income excludes VAT. | £115,000 |
| Less: director salary | −£12,570 |
| Less: employer NI on salary | −£1,136 |
| Less: business expenses | −£6,000 |
| Less: accountant fees | −£1,200 |
| Less: company pension contribution | −£5,000 |
| Taxable company profit | £89,095 |
| Less: corporation tax | −£19,860 |
| After-tax distributable profit | £69,234 |
| Dividends paid (100%) | £69,234 |
| Less: dividend tax | −£13,898 |
| Less: PAYE income tax on salary | £0 |
| Less: employee NI on salary | £0 |
| Less: student loan | £0 |
| Net annual take-home | £67,907 |
| Retained company profit (0%) | £0 |
This calculator uses UK 2025/26 corporation tax assumptions including marginal relief. Dividend tax is only applied to profits actually distributed; retained profits remain inside the company.
Outside IR35 contracting can often result in higher take-home pay than umbrella employment, depending on income level, expenses and compliance requirements. Compare against the Umbrella Company Calculator or watch out for the IR35 Comparison Calculator (coming soon).
Contractor Calculator FAQs
Related contractor calculators
Explore other ways to estimate UK contractor pay across PAYE, umbrella and limited company.
Inside IR35 Calculator
PAYE-style take-home for inside IR35 contracts.
IR35 Comparison Calculator
Compare PAYE, umbrella and Ltd side by side.
Umbrella Company Calculator
Contractor take-home via PAYE umbrella.
Day Rate Calculator
Convert any day rate into estimated take-home.
Contractor Tax Calculator
Income, corporation and dividend tax breakdown.
Take-Home Pay Calculator
PAYE salary after tax, NI and pension.
This calculator provides estimates only and should not be treated as tax, accounting or financial advice. Contractor tax treatment can vary depending on circumstances and legislation. Assumes standard UK 2025/26 tax thresholds, standard director salary approach, and evenly distributed contract income across the year.