๐Ÿ‡ฌ๐Ÿ‡ง UK Contractor Tax Calculator

2025/26 tax year ยท Ltd company vs PAYE ยท Instant results, no signup

โš ๏ธ This calculator provides estimates based on standard UK tax rates for 2025/26 (from 6 April 2025). It assumes optimal salary/dividend extraction for Ltd. PAYE calculations treat the input as gross salary โ€” employer NI is paid separately by the employer and is not deducted from employee take-home. Not financial advice โ€” consult an accountant for your specific situation.

Income

Deductions & Contributions

ยฃ5,000
ยฃ0
Ltd: paid as employer contribution (reduces corp tax). PAYE: salary sacrifice (reduces income tax + NI). Max ยฃ60k/year.
0%
Employer pension contribution as % of salary (common: 3-5%). This is ON TOP of salary, increases total package value.
ยฃ0
Pay spouse a salary from Ltd company (e.g. up to ยฃ12,570 tax-free allowance). Deductible as business expense, reduces corporation tax.

Options

Show IR35 Inside (umbrella) What if you're caught inside IR35?
Use different PAYE package Compare different salary vs day rate amounts
Extract only up to basic rate (ยฃ50,270) Keep profits in company above basic rate threshold
Show Self-Employed comparison Compare with sole trader/self-employed
0%
Split dividends between you and spouse to utilize both personal allowances. 0% = no spouse, 50% = equal split.

Ltd Company โ€” Take Home

โ€”
โ€” effective tax rate

PAYE Employment โ€” Take Home

โ€”
โ€” effective tax rate

You Save With a Ltd Company

โ€”
โ€” more per year

Tax Breakdown Comparison

Ltd CompanyPAYE
Gross Revenueโ€”โ€”
Business Expensesโ€”โ€”
Pension Contributionโ€”โ€”
Salaryโ€”โ€”
Corporation Taxโ€”โ€”
Income Taxโ€”โ€”
Employee NIโ€”โ€”
Employer NIโ€”โ€”
Dividend Taxโ€”โ€”
Total Tax + Costsโ€”โ€”
Net Take Homeโ€”โ€”

Visual Comparison

Ltd
PAYE
๐ŸŸฉ Take home๐ŸŸฅ Tax

๐Ÿ’ก Find This Calculator Useful?

This tool is free forever, but development and hosting cost money. If it saved you time or money, consider supporting it:

โ˜• Buy me a coffee

100% goes toward keeping this tool free and adding more features

๐ŸŽฏ Check Your IR35 Status

Before optimizing tax, ensure you're outside IR35. Use our free status checker:

Check IR35 Status (Free) โ†’

Takes 5 minutes โ€ข Based on HMRC CEST factors โ€ข No signup required

Need an Accountant for Your Ltd Company?

These specialist contractor accountants can help you optimise your tax position:

SJD Accountancy โ†’ Crunch (ยฃ50-ยฃ150 referral) โ†’ Gorilla Accounting โ†’