Tax Year 2026/27

Outside IR35 Contractor (Ltd Company) Calculator

Calculate your take-home pay as an outside IR35 contractor operating through a limited company. Includes corporation tax, dividend tax, optimal salary analysis, and employer NI — updated for the 2026/27 tax year.

Contract Income

Annual Revenue £0

Business Expenses

Director's Salary

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Salary Tip: Most contractors take a salary of £12,570 (personal allowance) or £5,000 (below NI secondary threshold). The optimal level depends on your circumstances.
Both directors take the same salary. Dividends split 50/50.

Pension & Benefits

Corporation tax deductible

Company Financials

Annual Revenue £0
Business Expenses −£0
Director's Salary −£0
Employer NI on Salary −£0
Employer Pension −£0
Taxable Profit £0
Corporation Tax −£0
Corp Tax Rate 0.0%
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Note: Corporation tax rates (19% for profits under £50,000, 25% over £250,000, with marginal relief between) apply to all UK limited companies regardless of industry or sector. These are not specific to IT or contracting. HMRC: Corporation Tax rates →
Retained Profit £0

Personal Tax (Extraction)

Max Dividend Available £0
Salary £0
Dividends £0
Income Tax on Salary −£0
Employee NI −£0
Dividend Tax −£0
Student Loan −£0
Annual Take-Home £0
Monthly Take-Home £0
Total Tax Burden: 0.0%

Optimal Salary Comparison

Salary Level Corp Tax Personal Tax Employer NI Total Tax Take-Home
£0 salary £0 £0 £0 £0 £0
£5,000 salary £0 £0 £0 £0 £0
£12,570 salary £0 £0 £0 £0 £0

Your Tax Calendar

Assumptions & Limitations

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  • Corporation tax: Rates of 19% (profits under £50k) and 25% (over £250k) with marginal relief apply to all UK limited companies regardless of industry. HMRC: Corporation Tax rates →
  • Dividend extraction: This calculator assumes all retained profit is taken as dividends. In practice, you may retain profit in the company for working capital or future investment.
  • IR35 status: This calculator assumes you are genuinely outside IR35. If HMRC determines you are inside IR35, your tax position changes significantly. HMRC: Understanding IR35 →
  • Employer NI: 15% above £5,000 secondary threshold. The Employment Allowance (£10,500) is not available to single-director companies. HMRC: Employment Allowance →
  • Optimal salary: The comparison table shows common salary levels. The most tax-efficient level depends on your individual circumstances including other income sources.
  • VAT: This calculator does not include VAT. If your taxable turnover exceeds £90,000, you must register for VAT. HMRC: VAT registration →

This calculator is for illustrative purposes only and does not constitute financial or tax advice. Calculations are based on announced HMRC rates for the 2026/27 tax year. Always consult a qualified accountant or tax adviser for personalised guidance. Student loan repayment thresholds and rates are subject to annual review by the Student Loans Company.

Annual Take-Home £0
Monthly Take-Home £0