UNDERSTAND YOUR NUMBERS
Calculation Methodology
Understand payroll, company profit, dividend extraction, pensions and equivalent-income solvers.
Tax year 2026/27 · Last verified · Methodology · Official sources
Permanent
Salary, bonus and cash allowance form gross pay. Net-pay pension reduces income tax but not NI. Salary sacrifice reduces both. Taxable benefits affect tax, while gross benefits stay separate.
Inside IR35
Solve assignment budget into gross pay after margin and employer costs, then apply payroll deductions. Gross PAYE mode bypasses assignment conversion.
Outside IR35
Expenses, salary, employer NI and qualifying pension reduce company profit. Corporation Tax uses marginal relief. Personal tax applies to salary and withdrawn dividends; reserves remain in the company.
Equivalence
Bounded searches find salary or rate matching the chosen value. Automatic director salary searches feasible salaries and refines modelled economic value; it is not personal advice.
Days and risk
Remove non-overlapping unpaid days. Multiply break-even by the explicit premium; no job-loss probability is inferred.