UK Contractor Day Rate Calculator
Find out exactly what day rate you need to charge to hit your take-home target — accounting for IR35, taxes, and fees.
Updated for 2025/26 Tax Year
How the Calculator Works
Inside IR35
If your contract is inside IR35, you're taxed like an employee. Your client pays your umbrella company, who deduct:
- Their margin (typically 3-5%)
- Employer's National Insurance (13.8%)
- Your Income Tax (PAYE)
- Your Employee's NI (8%/2%)
Outside IR35
If you're genuinely outside IR35, you can work through a limited company and pay yourself via:
- A small salary (tax-efficient)
- Dividends (lower tax rate)
- Pension contributions
- Allowable expenses
Important Notes
- This calculator uses 2025/26 UK tax rates
- Results are estimates — actual amounts may vary
- IR35 status is determined by HMRC, not by choice
- Always consult an accountant for personal advice
2025/26 UK Tax Rates
Income Tax
| Personal Allowance | £0 - £12,570 | 0% |
| Basic Rate | £12,571 - £50,270 | 20% |
| Higher Rate | £50,271 - £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
National Insurance (Employee)
| Below threshold | £0 - £12,570 | 0% |
| Main rate | £12,571 - £50,270 | 8% |
| Above UEL | Over £50,270 | 2% |