How is contractor take-home worked out?

It starts from your day rate × billable days. Outside IR35, your limited company pays Corporation Tax on profit and you draw dividends; inside IR35, you are taxed via an umbrella on PAYE with employer National Insurance. Take-home is typically 60–75% of contract value depending on status, rate and expenses.

What is a realistic take-home percentage?

Through an umbrella, expect roughly 60–65% of the contract value after employer NI and PAYE. Through a limited company outside IR35, roughly 65–75% after Corporation Tax and dividend tax, before expenses and pension. Higher rates keep a smaller share once the £100,000 Personal Allowance taper and additional rates bite.

Which calculator should I use?

If your status is set, use the umbrella calculator (inside IR35) or the day-rate calculator set to outside IR35. If you are weighing the options, the IR35 calculator compares status and the umbrella-vs-limited calculator compares the trading vehicle.

Contractor take-home pay calculator 2026/27

Enter a day rate for a quick read on what you would actually keep — through an umbrella or your own company — then pick the right tool for your situation.

Day rate

Billable days a year

A quick estimate. Use the tools below for the full, scenario-specific breakdown.

£110,000 a year, your likely take-home

2026/27

Inside IR35 · umbrella

£65,519

keep 60%

Outside IR35 · limited

£69,932

keep 64%

A guide only — your figure depends on IR35 status, expenses and pension. Pick a tool below.

Verified · 2026/27
21 June 2026

Choose the right calculator

Umbrella take-home

Your net through an umbrella, with employer NI, the levy and margin shown line by line.

Day rate calculator

Turn a day rate into an annual figure and take-home, inside or outside IR35.

IR35 calculator

Inside vs outside IR35 take-home, side by side, on the same contract.

Umbrella vs limited

Which keeps more once you are outside IR35 — including accountancy costs.

Background reading: IR35 explained · How umbrella companies work · Contractor holiday pay.

How this was calculated

From your day rate and billable days we work out the annual contract value, then your take-home two ways for 2026/27: through an umbrella (margin, employer National Insurance, Apprenticeship Levy, then PAYE) and through your own limited company (a £12,570 salary, employer NI, Corporation Tax with Marginal Relief, then dividends). Standard assumptions, no expenses; every rate traced to a dated gov.uk source.

The full method and every source is on our methodology page.

Built & maintained by the Pay Packet team · methodology sourced from HMRC · last reviewed 21 June 2026. About our figures →

How contractor pay really works

A contract rate is gross of everything — there is no employer quietly paying National Insurance, pension or holiday on your behalf. What you keep depends first on IR35 status, then on your trading vehicle and expenses. Inside IR35, you are taxed like an employee through an umbrella; outside IR35, your own company pays Corporation Tax and you take dividends, usually keeping more.

These tools use the 2026/27 rates — employer National Insurance at 15%, Corporation Tax at 19–25% with Marginal Relief, and the higher dividend rates from April 2026 — each traced to gov.uk. They are a guide, not a substitute for an accountant or a formal IR35 determination.

Contractor take-home questions

How is contractor take-home worked out?: It starts from your day rate × billable days. Outside IR35, your limited company pays Corporation Tax on profit and you draw dividends; inside IR35, you are taxed via an umbrella on PAYE with employer National Insurance. Take-home is typically 60–75% of contract value depending on status, rate and expenses.
What is a realistic take-home percentage?: Through an umbrella, expect roughly 60–65% of the contract value after employer NI and PAYE. Through a limited company outside IR35, roughly 65–75% after Corporation Tax and dividend tax, before expenses and pension. Higher rates keep a smaller share once the £100,000 Personal Allowance taper and additional rates bite.
Which calculator should I use?: If your status is set, use the umbrella calculator (inside IR35) or the day-rate calculator set to outside IR35. If you are weighing the options, the IR35 calculator compares status and the umbrella-vs-limited calculator compares the trading vehicle.

Guidance for 2026/27, not tax or financial advice. Standard assumptions throughout; your figures depend on IR35 status, expenses and pension. Always confirm with a qualified adviser and gov.uk/HMRC.