UK Contractor Take-Home Calculator

Outside IR35 (Limited Company) vs Umbrella · Accurate 2026/27 rates

2026/27 Tax Year · Free · No signup

Your Contract Details

Typical full year: 220 days
Typical range: £15–£30 per week
Deducted from take-home
Paid by the company (tax deductible)
Currently uses England/Wales rates for reliability

Take-Home Comparison

Outside IR35 · Limited Company

£0
£0 / month
Effective rate: 0%

Inside IR35 · Umbrella Company

£0
£0 / month
Effective rate: 0%
Outside IR35 advantage
£0 / year

Salary Optimiser (Outside IR35)

Compares the three most common director salary strategies for your numbers. The best option is highlighted.

Salary Strategy Take-Home Corp Tax Dividend Tax

Break-even Day Rate

What day rate would you need on an Inside IR35 (Umbrella) contract to match your current Outside IR35 take-home?

Break-even day rate (Umbrella)
£0
Based on the same number of working days and current umbrella margin.

How this calculator works (2026/27 rates)

All figures use confirmed HMRC rates for the tax year 6 April 2026 – 5 April 2027.

  • Personal Allowance: £12,570 (frozen)
  • Income Tax (rUK): 20% / 40% / 45%
  • Dividend Tax (from April 2026): 10.75% basic · 35.75% higher · 39.35% additional · £500 allowance
  • Employer NI: 15% above £5,000 secondary threshold
  • Employee NI: 8% main · 2% above upper limit
  • Corporation Tax: 19% ≤ £50k · marginal relief £50k–£250k · 25% above £250k
  • Student Loan thresholds (2026/27): Plan 1 £26,900 · Plan 2 £29,385 · Plan 4 £33,795 · Plan 5 £25,000 · Postgrad £21,000

Outside IR35 model: Low salary + dividends after Corporation Tax. Company pension and expenses are deductible.

Umbrella model: Assignment rate minus weekly margin, then employer NI + PAYE + employee NI. Typical compliant umbrella margins in 2026/27 are £15–£30 per week (most common £20–£28). The default of £25/week is a realistic mid-range figure.

This is an estimate only. Actual results depend on your exact circumstances and IR35 status determination. Always seek professional advice for important decisions.