Working through your own limited company? Enter your day rate and billed days to estimate your real take-home pay — using a tax-efficient salary plus dividends, with Corporation Tax and dividend tax all factored in.
Outside IR35 · limited company
Outside IR35, the tax-efficient model is to draw a small salary (typically up to the personal allowance or NI threshold) and take the rest of your profit as dividends. The salary is an allowable expense that reduces Corporation Tax; the remaining profit is taxed at the company rate, and then dividends carry their own lower personal tax rates with no National Insurance.
| Dividend band | 2026/27 rate |
|---|---|
| Dividend allowance | £500 (0%) |
| Basic rate | 8.75% |
| Higher rate | 33.75% |
| Additional rate | 39.35% |
An umbrella company runs your pay through PAYE, simpler but with lower take-home and employer costs deducted. A limited company outside IR35 retains more but carries admin, accountancy fees and filing duties. Cross-check the dividend side on the dividend tax calculator, the company tax on the corporation tax calculator, and an employed comparison on the salary calculator.
On about 220 billed days (~£110,000 turnover), an outside-IR35 limited-company contractor typically keeps around £75,000–£80,000 after expenses, Corporation Tax and dividend tax.
A small salary avoids most NI and reduces Corporation Tax; dividends carry lower rates (8.75/33.75/39.35%) and no NI, so the mix beats taking everything as salary.
It decides whether you're genuinely self-employed or a 'disguised employee'. Inside IR35 you're taxed almost like an employee, sharply cutting take-home.
Outside IR35, a limited company usually retains more but carries admin and fees. Inside IR35 or for short stints, an umbrella is simpler. The right choice depends on status and contract length.
