How we calculate your earnings

Our Take-Home Pay Calculator makes a number of assumptions in order to calculate the figures in our calculations. These are detailed below.

These calculations are for illustrative purposes only. If you want a more accurate view of your earnings for the tax year 2018/19, simply contact us for a bespoke calculation.

General points

All calculations are based on the income and expenses entered by you.

Total take-home pay is the net salary and dividends after our estimation of tax due.

Total income is based on daily earnings rate, days worked per week, and weeks worked per year.

Your result doesn’t include any reimbursed expenses. We believe this gives a fairer and more accurate picture of your take home pay.

The calculations are defaulted to 52 working weeks per tax year (4.3 weeks per month).

Business expenses entered are assumed to be allowable, therefore reducing taxable profits or earnings.

In all calculations, the 2018/19 income tax and NIC rates are used.

An individual's personal tax allowance per year is £11,850 (2018-19).

It is assumed there are no earnings from other sources.

The Corporation and Income tax amounts are estimates based on the figures you've entered.

Limited company assumptions

The business is incorporated in the UK with a single director / shareholder.

All profits after tax are taken out of the company as dividends.

Income is based on being on the Flat Rate Scheme for VAT in the IT consultancy industry, with first year discount applied.

Expenses are assumed to be inclusive of VAT.

Assignments are not subject to IR35 - if you unsure about this you can use our IR35 calculator.

Director’s salary from the limited company is assumed to be £8,424.

Limited company accountancy fees are based on our standard Crunch service of £69.50+VAT a month.

Employment allowance is not taken into account.

Sole trader assumptions

Sole trader accountancy fees are based on our standard Crunch service of £29.50+VAT a month.

Income is based on being on the Flat Rate Scheme for VAT under the IT consultancy industry, with first year discount is applied.

Expenses are assumed to be inclusive of VAT.

Umbrella assumptions

No supervision, direction, or control (SDC) on any assignment during the tax year.

You receive a tax refund from HMRC after the tax year end (5th April) on any expenses incurred but not reimbursed during the year. The refund amount is included as an average weekly or monthly amount.