UK Contractor Take Home Pay
Calculate net take-home pay for UK contractors.
Tax Breakdown
| Gross Annual | £192 000.00 |
| Corp Tax | -£43 672.05 |
| Income Tax | -£2 514.00 |
| Employee NI | -£0.00 |
| Dividend Tax | -£40 602.15 |
| Net Take Home (Annual) | £104 732.94 |
About Calculator
The UK Contractor Calculator estimates net take-home pay, income tax, and National Insurance contributions for independent professionals working inside or outside IR35.
Key 2026/27 tax rules applied include the frozen £12,570 Personal Allowance, standard income tax brackets (20% Basic, 40% Higher, 45% Additional), and the updated Employer National Insurance threshold (£5,000 baseline at 15%).
Outside IR35 contractors can optimize their remuneration using a low director salary combined with dividend distributions, whereas Inside IR35 engagements are subjected to PAYE payroll deductions.
Frequently Asked Questions (FAQ)
What is IR35 in the UK?
IR35 (Off-payroll working) determines whether a contractor is a genuine independent business or a disguised employee for tax purposes.
What changed in 2026 for small companies under IR35?
The turnover threshold for small company exemption was raised to £15 Million (balance sheet £7.5M). For small private clients, the contractor self-assesses IR35 status.
What is the Personal Allowance in 2026/27?
The standard Personal Allowance is £12,570, tapering down by £1 for every £2 earned above £100,000.
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