About This Calculator

What It Does

This free tool helps UK contractors compare the tax implications of working through a Limited Company (taking salary + dividends) versus being employed on PAYE. Enter your day rate and see an instant side-by-side comparison.

Features

Ltd vs PAYE comparison — See exactly how much more (or less) you keep through a Ltd company
Salary/dividend optimisation — Adjust your salary to find the most tax-efficient split
Pension contributions — Model employer pension contributions and their tax impact
Spouse salary splitting — See the benefit of employing a spouse
IR35 impact — Understand the difference between inside and outside IR35
2025/26 tax year — Uses current HMRC rates and thresholds

How It Works

All calculations run in your browser — your data never leaves your device. The calculator uses the official 2025/26 tax rates from HMRC including income tax bands, National Insurance thresholds, corporation tax, and dividend tax rates.

Accuracy

This tool provides estimates for comparison purposes. For professional tax advice, consult a qualified accountant. Tax rules can be complex and individual circumstances vary.

Key rates used:

Corporation Tax: 19% (small profits) / 25% (main rate)
Personal Allowance: £12,570
Dividend Allowance: £500
NI thresholds and rates per HMRC 2025/26

Open Source

This calculator is open source and available on GitHub. Found a bug or have a feature request? Open an issue.

Contact

Built by a UK contractor, for UK contractors. Questions or feedback? Reach out via GitHub Issues.