Take-home pay calculators can be key, particularly when it comes to estimating your finances and working out what you could, and should, be getting paid as a contractor or freelancer. When applied appropriately, take-home pay calculators can provide valuable information about your earnings. This information allows you to make accurate predictions and estimations, and put in place plans for yours or your business’ financial future. Take-home pay calculators factor in your contracted rate, pension, tax commitments, payment cycle, and the hours you work each week.
Contractor CalculatorAvailable on our home page, our contractor calculator is quick, easy and free to use. It follows a set criteria and applies tax legislation to give you an idea of what your take-home pay could be once the necessary deductions have been made. This useful tool gives you information about what you can expect to earn from contracts you may be considering. The calculations are made using Tax and National Insurance rates from the 2018/19 tax year. They are based on the following assumptions:
- You work 52 weeks per full tax year (4.3 weeks per month)
- Your tax code is 1185L
- 5% pension contributions are made, capped at £44.60* (this does not apply to limited company calculations)
- You don’t have earnings from other sources during the current tax year
Here’s how it works:
- Firstly, select both your ‘hourly rate’ and ‘hours worked per week’ using the two sliders.
- Then, let us know your payment cycle, i.e. per week or per month.
- Finally, click ‘calculate your earnings’. It’s that simple.
- Limited Company (inside IR35)
- Limited Company (outside IR35)
- Employment Umbrella (with expenses)
- Employment Umbrella (without expenses)
For more informationIf you’re not an expert in tax legislation, such as IR35, or the regulations surrounding self-employment – and who can blame you if this is the case –getting an initial, accurate assessment on your income can be somewhat challenging. When you use our take-home pay calculator you’ll be ahead of the game, safe in the knowledge that you’re fully prepared for your next contract.
To discuss the outcome of your take-home pay calculation, or for a more in-depth discussion about contracting or Danbro’s employment and limited company solutions, call our dedicated team now on 01253 600 140.