Question 1

What is ContractorCalcs?

Accepted Answer

ContractorCalcs is a free, private UK contractor finance planning tool. It lets you compare take-home pay across all four engagement routes — outside IR35 limited company, inside IR35, umbrella, and permanent employment — using 2026/27 tax rates. All calculations run in your browser; no data is sent to any server.

Question 2

How do I calculate my take-home pay as a UK contractor?

Accepted Answer

Enter your day rate (or annual rate), days per week, weeks per year, and tax preferences into ContractorCalcs. The tool instantly calculates your net take-home pay for all four routes — outside IR35 Ltd, inside IR35, umbrella, and permanent — including income tax, National Insurance, corporation tax, dividend tax, and pension contributions, using the latest 2026/27 HMRC rates.

Question 3

What is the difference between outside IR35 and inside IR35 for contractors?

Accepted Answer

Outside IR35 means you operate as a genuine independent contractor through your own limited company, paying yourself a combination of salary and dividends, which is typically more tax-efficient. Inside IR35 means HMRC treats your contract as disguised employment, so you pay full PAYE income tax and National Insurance on your earnings, similar to a permanent employee. ContractorCalcs models both scenarios side by side so you can see the exact financial difference.

Question 4

What is the best way to take money out of a limited company in 2026/27?

Accepted Answer

For most UK contractor directors in 2026/27, the most tax-efficient approach is to pay yourself a salary equal to the Secondary NI threshold (£5,000) or the personal allowance (£12,570), then take the remainder as dividends. Pension contributions via employer contributions are also highly effective, as they reduce corporation tax and are not subject to dividend tax. ContractorCalcs models all of these combinations and shows you the optimal split for your specific rate and circumstances.

Question 5

Is ContractorCalcs free to use?

Accepted Answer

Yes. ContractorCalcs is completely free. There is no account required, no subscription, and no data is stored on any server. All calculations happen privately in your browser using the latest 2026/27 HMRC tax rates.

Question 6

Does ContractorCalcs cover Scottish income tax?

Accepted Answer

Yes. ContractorCalcs supports Scottish income tax rates, which differ from the rest of the UK. Scottish taxpayers pay income tax across six bands (Starter, Basic, Intermediate, Higher, Advanced, and Top rate). Select 'Scotland' in the region selector to apply the correct 2026/27 Scottish rates to your calculation.

Question 7

What is the IR35 compliance score in ContractorCalcs?

Accepted Answer

The IR35 compliance score is a 7-factor weighted checklist that gives your contract an indicative risk rating: Strong Outside IR35, Moderate Risk, or High Risk (likely caught). It covers substitution rights, control, mutuality of obligation, financial risk, equipment, exclusivity, and integration. It is an indicative tool, not a substitute for a formal IR35 review by a qualified adviser.

Question 8

How accurate are the ContractorCalcs calculations?

Accepted Answer

ContractorCalcs uses the official 2026/27 HMRC tax rates and thresholds, including the correct Scottish income tax bands, dividend tax rates, National Insurance thresholds, corporation tax rates, and pension annual allowance. The calculations have been verified against HMRC's own PAYE and Self Assessment guidance. They are estimates for planning purposes and should be confirmed with a qualified accountant before making financial decisions.

Month	Invoice income	Expenses	VAT ring-fence	CT reserve	Safe draw
M1	£9,167	£500	£0	£1,682	£5,592
M2	£9,167	£500	£0	£1,682	£5,592
M3	£9,167	£500	£0	£1,682	£5,592
M4	£9,167	£500	£0	£1,682	£5,592
M5	£9,167	£500	£0	£1,682	£5,592
M6	£9,167	£500	£0	£1,682	£5,592
M7	£9,167	£500	£0	£1,682	£5,592
M8	£9,167	£500	£0	£1,682	£5,592
M9	£9,167	£500	£0	£1,682	£5,592
M10	£9,167	£500	£0	£1,682	£5,592
M11	£9,167	£500	£0	£1,682	£5,592
M12	£9,167	£500	£0	£1,682	£5,592

See your best contract route, monthly take-home and tax risk in one place.

Useful setup deals while you plan the numbers.

Cashflow and reserve planner

12-month reserve chart