Contractor Calculators & Tools (2026/27)
Thirty-two free tools for UK contractors and limited company directors — IR35 take-home, income tax and NI, dividend tax, corporation tax, umbrella pay, salary sacrifice, VAT, mortgage, stamp duty, day rates, plus a contracting-abroad suite. Every tool runs on 2026/27 figures.
Start here — the three most used
All 32 calculators and tools
Grouped by what you are trying to work out. Every figure below is 2026/27 unless a tool says otherwise, and each one runs in your browser — nothing is sent anywhere.
Key tax changes for contractors in 2026/27
One change dominates the 2026/27 tax year for limited company contractors: dividend tax went up. The items that used to lead this page — the employer NIC rise, the cut to the dividend allowance — have already happened. They are the baseline now, not the news.
The bill is easy to size. A director on a £12,570 salary drawing £50,000 of dividends pays £8,396 of dividend tax in 2026/27, against £7,406 on the same figures in 2025/26. That is £990 more — two per cent of the £49,500 of dividends that actually gets taxed. Run your own numbers through the Dividend Tax Calculator, then re-check your split with the Salary/Dividend Optimiser.
Two related points catch people out. The £500 dividend allowance is a nil-rate band, not a deduction: it is charged at 0% but it still uses up basic-rate band as it is applied, so it does not keep the rest of your dividends out of the higher rate. And the section 455 charge on an overdrawn director's loan followed the same rise, to 35.75% — but by loan date, so loans made before 6 April 2026 keep 33.75%.
What did not change
Income tax rates and thresholds are frozen, and Budget 2025 extended the freeze from the end of 2027/28 to 5 April 2031. The personal allowance stays at £12,570, the basic rate limit at £37,700 and the higher rate threshold at £50,270 — so fiscal drag has another five years to run. Employee NI is unchanged at 8% then 2%, corporation tax at 19% and 25% with marginal relief between £50,000 and £250,000, and the VAT registration threshold at £90,000 (deregistration £88,000).
Employer NIC: history, not news
Employer NIC has been 15% above a £5,000 secondary threshold since April 2025, when the rate rose from 13.8% and the threshold fell from £9,100. Budget 2025 left both alone and the secondary threshold is now held to April 2031. It still matters if you are inside IR35 or on an umbrella, because it comes out of the assignment rate before your gross pay is worked out — the Umbrella Take-Home Pay Calculator shows that deduction explicitly. The Employment Allowance stays at £10,500, and it is a company-level allowance: never credit it to an individual worker.
Other 2026/27 changes worth knowing
- Mileage — the biggest single move of the year. The AMAP rate for the first 10,000 car and van miles rose from 45p to 55p, its first change since 2011/12. Announced on 21 May 2026 and backdated to 6 April 2026. Over 10,000 miles stays at 25p, and the NIC disregard is a flat 55p on all miles.
- Umbrella supply chains. From 6 April 2026 the agency closest to the client — or the client itself — carries joint and several liability for PAYE an umbrella fails to pay. The umbrella still operates the payroll, and no worker's take-home changes because of it.
- Salary sacrifice is still uncapped. The employer NIC exemption has no ceiling in 2026/27; the announced £2,000 cap on sacrificed pension contributions does not start until 6 April 2029.
- Making Tax Digital for Income Tax became mandatory on 6 April 2026 for sole traders and landlords whose 2024/25 qualifying income exceeded £50,000. It does not apply to a personal service company.
- NI oddments. The lower earnings limit rose to £129 a week (£6,708 a year) — the one employee threshold that moved. Voluntary Class 2 is £3.65 a week, Class 3 £18.40, and the Class 2 small profits threshold £7,105.
- National Living Wage is £12.71 an hour from 1 April 2026, with £10.85 for 18–20s and £8.00 for under-18s and apprentices.
- Student loan thresholds: Plan 1 £26,900, Plan 2 £29,385, Plan 4 £33,795. Plan 5 held at £25,000 and postgraduate at £21,000.
- Scotland. Rates and the band count are unchanged, but the starter band now tops out at £16,537 and the basic band at £29,526. Dividends are reserved, so Scottish taxpayers pay the same 10.75% / 35.75% / 39.35%.
Dividend tax
| Item | 2026/27 | 2025/26 | Change |
|---|---|---|---|
| Ordinary (basic) rate | 10.75% | 8.75% | +2pp |
| Upper (higher) rate | 35.75% | 33.75% | +2pp |
| Additional rate | 39.35% | 39.35% | no change |
| Dividend allowance | £500 | £500 | no change |
Dividends are the top slice of income. The £500 allowance is a nil-rate band that uses up band rather than a deduction from income.
Personal allowances
| Allowance | 2026/27 | 2025/26 | Change |
|---|---|---|---|
| Personal allowance | £12,570 | £12,570 | no change |
| Blind person's allowance | £3,250 | £3,130 | +£120 |
| Married couple's allowance (max) | £11,700 | £11,270 | +£430 |
| Marriage allowance transfer | £1,260 | £1,260 | no change |
The personal allowance tapers by £1 for every £2 of income above £100,000 and is nil at £125,140. It is frozen to 5 April 2031.
Income tax bands (rUK)
| Rate | 2026/27 taxable income | 2025/26 | Change |
|---|---|---|---|
| Basic rate 20% | £1 – £37,700 | £1 – £37,700 | no change |
| Higher rate 40% | £37,701 – £125,140 | £37,701 – £125,140 | no change |
| Additional rate 45% | over £125,140 | over £125,140 | no change |
Bands apply to taxable income, after the personal allowance. £37,700 of taxable income equals £50,270 of gross salary on a standard code. Welsh rates are identical; Scotland has its own bands on non-savings income.
National Insurance
| Item | 2026/27 | 2025/26 | Change |
|---|---|---|---|
| Employee Class 1 rates | 8%, then 2% | 8%, then 2% | no change |
| Primary threshold | £12,570 | £12,570 | no change |
| Upper earnings limit | £50,270 | £50,270 | no change |
| Lower earnings limit | £6,708 (£129/wk) | £6,500 (£125/wk) | +£208 |
| Employer Class 1 | 15% above £5,000 | 15% above £5,000 | no change |
| Employment Allowance | £10,500 | £10,500 | no change |
| Class 4 (self-employed) | 6%, then 2% | 6%, then 2% | no change |
Directors use an annual earnings period regardless of how often they are paid.
Take-home pay on a salary, 2026/27
| Gross salary | Income tax | Employee NI | Take-home |
|---|---|---|---|
| £30,000 | £3,486 | £1,394 | £25,120 |
| £50,000 | £7,486 | £2,994 | £39,520 |
| £75,000 | £17,432 | £3,511 | £54,057 |
| £100,000 | £27,432 | £4,011 | £68,557 |
| £125,140 | £42,516 | £4,513 | £78,111 |
rUK, standard 1257L code, no pension or student loan, rounded to the nearest pound. Identical to 2025/26 — none of these rates or thresholds moved. The £125,140 row shows the personal allowance fully tapered away.
Which calculator do I need?
Thirty-two tools is a lot to scan. Here is the short route to the right one.
New to contracting
Start with the Day Rate Calculator to benchmark what you should be asking for, then Perm vs Contract to see whether the move stacks up against your salary. Should I Become a Contractor? covers the non-financial side.
Limited company director
The IR35 Tax Calculator gives your outside-IR35 take-home. Use the Corporation Tax Calculator for the company's bill including marginal relief, the Limited Company Tax Calculator for company and personal tax together, and the Dividend Tax Calculator plus the Salary/Dividend Optimiser to settle your split now that dividends cost two points more.
Inside IR35 or on an umbrella
Use the IR35 Tax Calculator to see what the status costs you, the Umbrella Take-Home Pay Calculator for an annual view, and the Umbrella Payslip Calculator to check a single assignment against the payslip you were sent. Then run the JSL Risk Checker to cross-check your umbrella against HMRC's named tax avoidance schemes list under the new 6 April 2026 joint and several liability rules.
On a salary, or checking a payslip
The Income Tax & NI Calculator is the general-purpose one — tax and employee NI on any salary. The PAYE & NI Calculator adds the employer NI cost, which is what an agency or umbrella is really pricing.
Negotiating a rate
The Rate Increase Calculator converts "I want another £50 a day" into what actually reaches you after tax, which is usually the number worth arguing over.
VAT registered
The VAT Calculator handles standard, reduced and custom rates. If you are weighing up the Flat Rate Scheme, the Flat Rate VAT Calculator compares it with standard accounting — and be warned that most one-person consultancies land on the 16.5% limited cost business rate, where the scheme is worth close to nothing. The registration threshold is £90,000 for 2026/27.
Worried about HMRC, or buying a house
The Tax Investigation Risk Profiler and the IR35 Risk Indicator are the two status and risk tools. For a mortgage, contractor income is assessed differently — the Mortgage Calculator estimates repayments based on your contract income, and the Stamp Duty Calculator works out SDLT, LBTT or LTT for England, Scotland and Wales — including first-time buyer relief and the second-home surcharge. The Inflation Calculator is useful for seeing what a rate held flat for three years is really worth.
Common questions about contractor tax, IR35 and getting the most from these calculators.
What are the best contractor calculators for UK contractors?
The ones that match your structure. Start with the IR35 Tax Calculator to compare inside and outside pay, the Income Tax & NI Calculator for any salary, the Corporation Tax Calculator for the company's bill, the Salary/Dividend Optimiser for a tax-efficient split, the Umbrella Take-Home Pay Calculator for umbrella work, and the Salary Sacrifice Calculator to maximise pension savings. New to contracting? The Day Rate Calculator and Perm vs Contract come first.
How much tax does a contractor pay in the UK?
It depends on your structure. A limited company contractor outside IR35 pays corporation tax at 19–25% on profits, then dividend tax on drawings at 10.75%, 35.75% or 39.35% for 2026/27 — often an effective rate of 27–37% once both layers are counted. Inside IR35, or on an umbrella, you pay PAYE income tax at 20–45% plus employee NI at 8% then 2%, the same as a permanent employee. Use the IR35 Tax Calculator to compare both routes on your own rate.
What is the difference between inside and outside IR35 take-home pay?
Outside IR35 you operate as a genuine business: a modest salary, the rest as dividends. Dividends carry no National Insurance and are still taxed below employment income even after the April 2026 rise to 10.75% and 35.75%. Inside IR35 your income is treated as employment for tax, so it takes full PAYE and NI. For a contractor on £500 a day the gap is typically £8,000–£18,000 a year — the IR35 Tax Calculator gives the exact figure for your rate.
How do I calculate my contractor day rate?
Start with the permanent salary for an equivalent role, add 20–30% to cover the benefits you no longer get (pension, holiday, sick pay), then divide by about 220 working days. Adjust for your IR35 status, your location and any scarce skill. The Day Rate Calculator does the conversion and benchmarks the result.
Do contractors pay more tax than employees?
Not necessarily. Outside IR35, limited company contractors usually pay less overall, because dividends attract no National Insurance and are charged at 10.75% or 35.75% rather than 20% or 40%. That advantage narrowed in April 2026 when both dividend rates rose by two percentage points. Inside IR35 you can pay more than a permanent employee, since you lose employment benefits while still bearing full PAYE. The Perm vs Contract Calculator gives a direct comparison.
What is salary sacrifice and how much can contractors save?
You give up part of your gross salary for a non-cash benefit — pension, cycle to work, an electric car. Because the sacrifice happens before tax and NI, a basic rate taxpayer saves 28% (20% income tax + 8% NI) and a higher rate taxpayer 42% (40% + 2%) on every pound sacrificed. The employer NIC exemption is uncapped for 2026/27; the announced £2,000 cap on sacrificed pension contributions starts on 6 April 2029. See the Salary Sacrifice Calculator for your own numbers.
Which calculator should I start with?
If your engagement might be caught by the off-payroll rules, begin with the IR35 Tax Calculator and sanity-check your working practices with the IR35 Risk Indicator. If you are new to contracting, the Day Rate Calculator first. If you are already contracting and want to optimise, the Salary/Dividend Optimiser and the Salary Sacrifice Calculator are where the money is.
Are the calculators updated for 2026/27?
Yes. Every tool here runs on 2026/27 figures: dividend tax at 10.75%, 35.75% and 39.35% with a £500 dividend allowance; a £12,570 personal allowance and a £50,270 higher rate threshold, both frozen to 5 April 2031; employee NI at 8% then 2%; employer NIC at 15% above a £5,000 secondary threshold; and corporation tax at 19% and 25% with marginal relief between £50,000 and £250,000. Scottish rates and bands are supported where applicable.
Is this financial advice?
No. All figures are estimates based on standard tax rules and are for illustration only. Your actual position depends on your circumstances, your contract and your company structure. Always speak to a qualified accountant for guidance tailored to your situation.
These calculators provide arithmetic calculations only. Verify with HMRC guidance or a qualified accountant.