Contractor Gap Calculator

Assignment / PAYE rate revenue: £144,000
Day rate × billable days; rate type determines whether employer costs are included.

Umbrella margin: £0
Explicit annual fee. No silent default.

Other employer costs: £0
Deducted before solving worker gross pay.

Employer NI: -£18,130
Assignment rate includes this cost; gross PAYE rate excludes it.

Employer pension: £0
Percentage of gross pay, deducted from assignment budget.

Apprenticeship levy: £0
0.5% of pay when umbrella levy applies.

Gross employment cash: £125,870
Salary + bonus + cash car allowance.

Salary sacrifice: £0
Reduces taxable pay and NI pay; added to employer pension.

Employee pension: £0
Net-pay arrangement: reduces income tax, not NI. Percentage of base salary.

Personal allowance: £0
£12,570 reduced £1 for every £2 of adjusted net income above £100,000.

Income tax at 20 %: £7,540
£37,700.00 × 20 %

Income tax at 40 %: £34,976
£87,440.00 × 40 %

Income tax at 45 %: £328
£729.57 × 45 %

Incremental personal tax: -£42,844
Total personal tax with this job less tax on other income alone.

Employee NI: -£4,528
Annual category A estimate: 8% between £12,570 and £50,270; 2% above.

Student loan: £0
Annualised repayments attributable to this job.

Net cash: £78,497
Annual spendable cash from this scenario; excludes other income.

Employer pension: £0
Employer contribution plus salary sacrifice.

Employer NI including Class 1A: £18,130
Employer cost, not deducted from your salary.

Benefits value: £0
Gross non-cash value, separately labelled.

Other deductions: £0
After-tax deductions.

Gross holiday pay accrued: £0
12.07% of base pay, included in total annual gross earnings. Net payment timing depends on payroll; annual cash assumes all accrual is eventually paid.

Company revenue: £144,000
Contract revenue + other company revenue; excludes VAT.

Allowable expenses: -£3,000
Assumes all entered costs qualify for Corporation Tax deduction.

Director salary: £0
Evaluated salary; paid from company funds.

Employer NI: £0
15% above £5,000 less eligible Employment Allowance.

Company pension: £0
Assumed qualifying employer contribution deductible before Corporation Tax.

Taxable company profit: £141,000
Revenue less expenses, salary, employer NI and pension.

Corporation Tax: -£33,615
19% / 25% with marginal relief; thresholds divided by 1 + associated companies. Assumes 12-month period and no exempt distributions.

Post-tax distributable profit: £107,385
No brought-forward losses or reserves assumed.

Dividends withdrawn: £107,385
Limited to current distributable profit.

Retained company profit: £0
Company reserves, not personal take-home.

Personal allowance: £8,878
£12,570 reduced £1 for every £2 of adjusted net income above £100,000.

Dividend tax at 10.75 %: £3,999
£37,200.00 taxable dividends × 10.75 %

Dividend tax at 35.75 %: £21,739
£60,807.50 taxable dividends × 35.75 %

Incremental income tax: £0
Includes any allowance taper affecting other income.

Incremental dividend tax: -£25,738
Total dividend tax less baseline tax on other dividends.

Employee NI: £0
Annual director category A NI.

Student loan: £0
Self Assessment estimate including unearned income above £2,000.

Take-home cash: £81,647
Salary + dividends − incremental personal tax − employee NI − student loan.