Contractor Calculator (Ltd Company)
Calculate your take-home pay as a contractor operating through a Limited Company. Enter your day rate to see a full tax breakdown.
Annual Take-Home
£68,894
Monthly
£5,741
Effective Day Rate
£300
Tax Rate
35.7%
Company Level
Personal Level
Frequently Asked Questions
What day rate should I charge as a contractor?
Day rates vary significantly by industry, skill set, and location. IT contractors in London might charge £400-800/day, while specialists in finance or pharma can charge more. Consider your equivalent salary, factor in no holiday pay, sick pay, or pension, and add a margin for the risk of gaps between contracts.
How many weeks should I budget for working?
Most contractors budget for 44-48 working weeks per year. This accounts for holidays (5-6 weeks), bank holidays, and potential gaps between contracts. Being conservative helps with cash flow planning.
What expenses can I claim through my limited company?
Common allowable expenses include: accountancy fees, professional subscriptions, training relevant to your work, home office costs (proportion of bills), travel to temporary workplaces, business insurance, computer equipment, and professional indemnity insurance.
Should I make employer pension contributions?
Employer pension contributions are very tax-efficient. They're a deductible expense for the company (reducing Corporation Tax), you pay no NI on them, and they grow tax-free in your pension. The annual allowance is typically £60,000 or your total earnings, whichever is lower.