Compare your estimated take-home pay as an umbrella company contractor vs operating through your own limited company. Based on 2026/27 UK tax rates.
This calculator compares the net take-home pay for UK contractors working through an umbrella company versus operating as a limited company director. It accounts for all taxes, NICs, umbrella fees, and accountancy costs.
Note: Limited company calculations assume an optimal salary/dividend split. IR35 status significantly affects the comparison — inside IR35 contractors typically benefit less from operating via a limited company.
Estimates based on 2026/27 HMRC rates. Limited company calculation assumes all post-tax profits are taken as dividends. Does not account for IR35 status, pension contributions, or expenses. Last updated: April 2026.
| Item | Umbrella | Ltd Co. |
|---|---|---|
| Annual Revenue | £130,000 | £130,000 |
| Employer's NI | £17,250 | £1,045 |
| Employee's NI | £4,260 | £0 |
| Income Tax | £32,412 | £0 |
| Corporation Tax | £0 | £28,796 |
| Dividend Tax | £0 | £19,563 |
| Fees | £300 | £1,200 |
| Annual Take-Home | £75,778 | £79,396 |