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Our Contractor Earnings Calculator enables you to quickly calculate the equivalent permanent salary that you would need to achieve the same take-home pay as your daily rate, or what daily rate you would need to negotiate to achieve the same take-home pay as a permanent salary. Simply enter your daily rate or permanent salary into the relevant box and press calculate – the calculator will then work out your take home pay (annually) and return the corresponding permanent salary or daily rate which will achieve the same outcome.

0 A B C E
1     Contractor Rate Permanent Salary
2     per day per annum
Calculate
3        
4     Contractor Permanent
5   Turnover £ 161000  
6   Salary £ 10600  
7   Accountancy £ 1140  
8   Pre-Tax Profit £ 149260  
9   Corporation Tax £ 29852  
10   Profit After Tax £ 119408  
11        
12   Gross Salary £ 10600 £ 173419
13   PAYE on Salary £ -2120 £ -64182
14   NICs on Salary £ -305 £ -6740
15   Net Dividends £ 119408  
16   Tax on Dividends £ -25085  
17   Take-home pay £ 102498 £ 102498
19        


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Assumptions:

  1. 46 working weeks
  2. Exempt from IR35
  3. No expenses claimed (except NWL fees)
  4. Salary of £10,000
  5. One shareholder
  6. No other income
  7. VAT registered company with Flat Rate of 14.5%
  8. Excludes any non-cash benefits
  9. Based on 2014/15 tax rates
0 A B C D E F G H I J K L
1 Income Tax   PAYE - Contractor   PAYE - Permanent
2   Threshold Dividend Rate Salary Rate   0.00 0.00 0.00   0.00 0.00 0.00
3 Personal Allowance 10600.00       10600.00 0.2 2120.00   31785.00 0.2 6357.00
4 Basic Rate 31785.00 0.00 0.2   0.00 0.4 0.00   118215.00 0.4 47286.00
5 Higher Rate 118215.00 0.225 0.4   0.00 0.45 0.00   96380.53 0.45 43371.24
6 Additional Rate 150000.00 0.275 0.45   Total 2120.00   Total 97014.24
7 Personal Allowance Withdrawal 100000.00 2.00                  
8 NIC Allowance 8060.00   0.12                
9 Upper Earnings Limit 42385.00   0.02   Employee's NIC - Contractor   Employee's NIC - Permanent
10           8060.00 0.00 0.00   8060.00 0.00 0.00
11 Corporation Tax     2540.00 0.12 304.80   34325.00 0.12 4119.00
12   Threshold Rate     0.00 0.02 0.00   203995.53 0.02 4079.91
13 Small Company 300000 0.2     Total 304.80   Total 8198.91
14 Marginal rate   0.2                  
15 Main Rate 1500000 0.2     Salary Dividend Total        
16           10600.00 194008.89 204608.89   £246381    
17 Accountancy Fees Threshold Rate     Personal Tax Due 41616.00        
18 Flat Rate 150000 1368                  
19 Standard Rate   1140     Dividend Tax - Contractor        
20           21185.00 0.00 0.00        
21           118215.00 0.225 26598.38        
22           54608.89 0.275 15017.44        
23           Total 41615.82