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§ Contractor calculator · IT Contractor

IT Contractor take-home calculator.

IT contracting covers software developers, infrastructure engineers, cloud architects, DevOps specialists, and technical analysts. Day rates span £300 for junior contractors up to £1,000+ for principal-level specialists.

§ Quick answer — typical £500/day rate

At £500/day (5 days × 46 weeks = £115,000 gross), the most tax-efficient structure is permanent salary at £74,257 net annual — effective tax rate 35.43%.

Outside IR35 (Ltd)
£72,293/yr
Inside IR35 (Umbrella)
£68,105/yr
Permanent salary
£74,257/yr

IT contractor demand is consistent across financial services, public sector, and fintech. Most engagements are now Inside IR35 since the 2021 off-payroll reforms.

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