Outside IR35 Contractor Tax Calculator 2026/27
Free UK limited company tax calculator for outside IR35 contractors. Calculate your optimal salary and dividend split, corporation tax, dividend tax, employer NI, and take-home pay — updated for April 2026 HMRC rates. Includes spouse/second director option for 50/50 dividend splitting.
Rates checked against GOV.UK: October 2026
Your details and results
Contract Income
Business Expenses
Director's Salary
Pension & Benefits
Company Financials
Personal Tax (Extraction)
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
Related analysis: Dividend Tax +2%: Real Impact · Inside IR35: The True Cost · Mileage Allowance: The New 55p Rate
Assumptions & Limitations
▼- 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 (up to £10,500 off employer NI) is not available when a single director is the only employee paying NI. With the spouse option, both directors are on the payroll, so your company may be able to claim it. It is not applied in these figures, so employer NI shown with a spouse may be higher than you pay. 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.