Contractor / IR35 Calculator

Enter your gross daily rate before any deductions. Day rates vary significantly by industry, skill level, and location. London rates are typically 20-30% higher than elsewhere. As a rough guide: junior roles £200-350/day, mid-level £350-500/day, senior/specialist £500-800+/day. Your rate should account for no holiday pay, sick pay, pension, or job security.

Most contractors work 5 days per week, but some roles offer 4-day weeks or require only 3 days on-site. Be realistic about your availability - if you're also doing business admin, marketing, or training, you might not bill 5 full days. Some contractors work 4.5 days, keeping half a day for admin.

As a contractor, you don't get paid holidays. Most contractors plan for 44-48 working weeks per year. 46 weeks (6 weeks off) is a common benchmark, allowing for: 4 weeks holiday, bank holidays, and some sick days or gaps between contracts. Remember, time off directly reduces your annual income - there's no paid leave.

IR35 determines whether you're taxed as self-employed or as an employee. Outside IR35: You're genuinely self-employed and can take a low salary plus dividends, which is more tax-efficient. Inside IR35: You're considered a 'disguised employee' and taxed like a permanent employee through PAYE. Since April 2021, medium/large clients determine your status using CEST (Check Employment Status for Tax) tool. Key factors: control over how you work, ability to send a substitute, and mutuality of obligation.

Typical contractor expenses include: accountant fees (£100-200/month), professional indemnity insurance (£200-500/year), equipment (laptop, software), training/certifications, home office costs, and travel to client sites (if not reimbursed). Outside IR35, you can also claim for company running costs. Be conservative with expenses - HMRC scrutinizes contractor claims closely.