Free tool · 2026/27 rates
Contractor take-home calculator
See what an outside-IR35 day rate actually leaves you after tax. Adjust your salary and dividends and watch your take-home update live. Built for UK limited-company contractors.
Take-home estimate
What an outside-IR35 contract actually leaves you, after tax.
The usual low-salary split (matches the personal allowance).
Personal take-home
£69,932
You keep 64% of £110,000 billed.
- Company revenue
- £110,000
- Corporation tax
- − £21,768
- Salary income tax + NI
- − £1,136
- Dividend tax£74,526 drawn · first £500 tax-free
- − £17,164
Estimate only, not tax advice. Assumes a single director with no other income, over a full tax year. The default is the common low-salary split (£12,570 salary, all post-tax profit drawn as dividends); adjust the salary and dividend levers to model your own split. Uses England and Northern Ireland income-tax bands. Scotland has different bands.
Take-home by day rate (2026/27)
Estimated personal take-home over 220 billable days, on the usual low-salary and dividends split.
| Day rate | Billed a year | Take-home | You keep |
|---|---|---|---|
| £400/day | £88,000 | £59,543 | 68% |
| £500/day | £110,000 | £69,932 | 64% |
| £600/day | £132,000 | £79,586 | 60% |
| £700/day | £154,000 | £86,337 | 56% |
| £800/day | £176,000 | £95,066 | 54% |
Estimates for the 2026/27 tax year (England and Northern Ireland). Not tax advice. Your figure depends on expenses, pension contributions, other income and your own circumstances.
How outside-IR35 take-home works
When you contract outside IR35 through your own limited company, the day rate is paid to the company as revenue, not to you as salary. You then decide how to pay yourself, and the order matters for tax.
- Revenue. Day rate times billable days worked in the year.
- Salary and expenses. A director salary (usually around the £12,570 personal allowance) plus allowable business expenses are deducted before tax.
- Corporation tax. The company pays 19% on profits up to £50,000, rising towards 25% (with marginal relief) above that.
- Dividends. Post-tax profit can be drawn as dividends. The first £500 is tax-free; the rest is taxed at your personal dividend rates.
The efficient split is usually a low salary plus dividends, which is what the calculator defaults to. But you do not have to take everything: profit left in the company is still your business’s money, available for a pension, a future year, or reinvestment. Slide the dividend control to model that.
Frequently asked questions
- How much do you take home on a £500 day rate outside IR35?
- At £500 a day over 220 billable days that's £110,000 of company revenue. On the common low-salary, dividends split, personal take-home is roughly £69,932 for the 2026/27 tax year, after corporation tax, National Insurance and dividend tax. That's about 64% of what you bill.
- How is outside-IR35 take-home taxed?
- Your limited company bills the day rate as revenue. It pays a small director salary (usually around the personal allowance), deducts allowable expenses, then pays corporation tax on the remaining profit. What is left can be drawn as dividends, which are taxed at your personal dividend rates. The calculator models all of this.
- What are the dividend tax rates for 2026/27?
- The first £500 of dividends is tax-free. Above that, dividends are taxed at 10.75% in the basic-rate band, 35.75% in the higher-rate band and 39.35% in the additional-rate band. The basic and higher rates rose by 2 points from April 2026.
- What salary should a contractor director take?
- Most single-director companies pay a salary around the personal allowance (£12,570), which keeps it below the income-tax and employee-NI thresholds, then take the rest as dividends. You can slide the salary in the calculator to see the effect. This is a general pattern, not advice for your situation.
- Do I have to draw all my profit as dividends?
- No. You can leave profit in the company (retained earnings) and draw it in a later year, put it into a pension, or reinvest it. The calculator lets you slide dividends down from the maximum and shows what stays in the business.
- Is this a tax calculation I can rely on?
- It is an estimate to help you compare day rates, not tax advice. It assumes a single director with no other income over a full tax year, uses England and Northern Ireland income-tax bands, and excludes VAT, pensions, student loans and other personal income. Check your own circumstances with an accountant.
Now find the contract
Only outside-IR35 roles, with the day rate, work mode and the client’s IR35 signal on every listing.