Contractor guides

Straight-talking guides to keeping more of what you earn as a UK contractor. Verified against HMRC rates for the 2025/26 tax year.

• What is IR35? A Contractor's Plain-English Guide (2025/26)

  IR35 explained simply: what 'inside' and 'outside' IR35 mean, who decides your status, and how it changes your take-home pay as a UK contractor.

• Umbrella vs Limited Company: Which Is Better for Contractors?

  A clear comparison of umbrella companies and your own limited company for UK contracting in 2025/26 — take-home pay, admin, IR35, and which to choose.

• Allowable Expenses for Limited Company Contractors (2025/26)

  What expenses a UK limited company contractor can legitimately claim in 2025/26 — and the common mistakes that trigger HMRC problems.

• How Your Contractor Take-Home Pay Is Calculated (2025/26)

  A step-by-step breakdown of how UK contractor take-home pay is worked out for 2025/26 — tax, National Insurance, dividends and corporation tax, explained.

• Day Rate to Salary: How to Convert a Contract Rate (2025/26)

  How to convert a contractor day rate into an equivalent annual salary — and why a £500/day contract is not the same as a £130k job. With worked examples.

• The Most Tax-Efficient Salary for a Director (2025/26)

  How much salary should a limited company contractor pay themselves in 2025/26, and why the salary-plus-dividends split matters for your take-home pay.

• How Pension Contributions Cut a Contractor's Tax Bill (2025/26)

  Why employer pension contributions are one of the most tax-efficient ways for a UK limited company contractor to extract money in 2025/26.

• Going Contracting for the First Time: A Starter Guide

  A practical first-timer's guide to UK contracting — choosing umbrella or limited, understanding IR35, setting your day rate, and what take-home to expect.