Inputs
Use annual figures. Other taxable income is used to position the contractor salary and dividends in the tax bands, but it is not counted as contractor take-home.
Contractor tax calculator
UK contractor tax calculator
Estimate limited company take-home pay from contract income, expenses, salary, Corporation Tax, dividends, Income Tax, and National Insurance. Defaults use 2026/27 UK rates for England, Wales, and Northern Ireland.
Method
The calculator deducts salary, employer National Insurance, expenses, and company pension from company income, then estimates Corporation Tax and dividend extraction.
Limits
This is a simplified outside-IR35 limited company estimate. It does not cover VAT, the Flat Rate Scheme, Scotland tax bands, benefits, loans, associated companies, or accountancy advice.
Last reviewed: 16 June 2026Rates checked: 2026/27 UK tax year
What this contractor estimate is for
This page estimates a simplified limited company contractor scenario where company income is reduced by allowable expenses, director salary, employer National Insurance, and company pension contributions before Corporation Tax. Remaining post-tax company profit is treated as available dividends.
It is intended for rough planning and comparison, not for filing company accounts, payroll returns, Self Assessment, or deciding whether a contract is inside or outside IR35.
- Contract incomeUse annual company income before VAT. If you invoice monthly, multiply a typical month by 12 or use your expected annual total.
- Allowable expensesEnter business costs that are deductible for Corporation Tax in your scenario. Do not include personal spending.
- Director salaryThe salary field affects company profit, employee National Insurance, employer National Insurance, and personal tax bands.
- Other taxable incomeThis is used only to position salary and dividends in the personal tax bands. It is not added to contractor take-home.
Worked example
With £90,000 contract income, £5,000 expenses, and £12,570 salary, the calculator estimates employer National Insurance of about £1,136, company profit before Corporation Tax of about £71,295, Corporation Tax of about £15,143, and available dividends of about £56,151. After estimated dividend tax, take-home is about £58,126.
Does this decide whether my contract is inside IR35?
No. IR35 status depends on the contract and working practices. This calculator assumes an outside-IR35 limited company extraction model and does not assess employment status.
Why is VAT excluded?
VAT depends on registration, scheme, client type, and whether figures are entered net or gross. This page focuses on profit extraction after company income and deductible costs.
Why can other income change the result?
Other taxable income can use part of the personal allowance or tax bands before contractor salary and dividends are added, which can increase the tax due on dividends.