2026/27 Tax YearContractor
Limited Company vs Umbrella Calculator
Compare your take-home pay working through a limited company versus an umbrella company.
Contract Details
Travel, equipment, training, etc. (Ltd only)
Annual Difference
+£16,061
Ltd Company pays more
Monthly difference
£1,338
Gross Contract Value
£110,000
500 × 220 days
Limited Company
Outside IR35 / PSC
Gross Revenue£110,000
Salary£12,570
Corporation Tax-£17,657
Dividends£75,273
Dividend Tax-£6,543
Take-Home Pay£81,301
Effective Tax Rate22.0%
Advantages
- Higher take-home pay
- Claim business expenses
- Tax-efficient pension contributions
Umbrella Company
Inside IR35 / PAYE
Gross Revenue£110,000
Umbrella Fee-£1,300
Employer NI-£14,420
Gross Salary£94,281
Income Tax-£25,144
Employee NI-£3,896
Take-Home Pay£65,240
Effective Tax Rate40.7%
Advantages
- No admin or accounting
- Employment rights included
- No IR35 risk