How much can I earn as a contractor?

Limited or Permanent Employee?

Another page we are sure you will find incredibly useful is: Take home pay Limited company or Umbrella company - The Real Story.

Firstly, let us say this is not SJD promoting or recommending that any contractor works through their own limited company. You and only you can make this decision. There are pros and cons for each method of working and all personal situations are different. SJD offer both Limited Company and umbrella services, and therefore are one of the very few firms that can offer impartial advice.

Back to the question, "so how much will I take home as a contractor?" This is without a doubt one of the most common questions we get asked -  not really surprising when you consider it’s one of the major reasons people decide to move from the world of the employed to contracting.

Basically, if you are a contractor working through your own limited company your take home will be anywhere between 75% - 80% of your contract value, for example:

  • Daily rate £200 take home between £150 - £160
  • Daily rate £300 take home between £225 - £240
  • Daily rate £400 take home between £300 - £320
  • Daily rate £600 take home between £450 - £480

Any accountant or tax adviser will tell you that working through your own limited company is the most tax efficient way of working, meaning you keep more of your hard earned money.

Our free online contractor calculator provides an illustration of the maximum amount a contractor could take from their contract when working through their own limited company. It assumes full tax planning and a number of other procedures are in place, some of which are quite complex and are best discussed directly with your accountant.

As mentioned, most clients and contractors working through their own limited company take home between 75% and 80% of their contract value.

If you would like to know more about working through your own limited company please read one of our many FREE to download guides, speak to a one of SJD's Client Liaison Managers on 01442 275789 or read our two minute guide to contracting through your own limited company.

If you have any queries or would like further advice please don't hesitate to contact us on 01442 275789 , email

SJD Accountancy

SJD Accountancy are the UK's largest specialist provider of fixed fee, Limited company accountancy services to contractors; we've been acting for contractors across the UK since 1992 and have more than 15,000 clients.

We are the only national specialist firm of contractor accountants with offices nationwide. SJD Accountancy has more qualified staff than any other firm in our market with qualifications from the following major tax and accountancy bodies - ATT, AAT, CTA, ACCA, CA, ACA and FCCA.

  • Unlimited face to face meetings. This is a unique service only SJD Accountancy offers - unlimited face to face meetings across the UK - tax is complicated and sometimes only a meeting will do.
  • UK's Largest contractor accountants with more qualified staff. No call centres, no outsourcing, no automated call handling. Simply telephone, email or meet your own dedicated accountant face to face.
  • Money back service guarantee. All your Emails received by 4pm on any normal working day will be answered the same day. Should it be necessary to leave a telephone message it will be answered same day/following day latest or we will make a full refund of that months fee.
  • Outstanding reputation. We have won more awards for customer service and accountancy excellence than any other firm in our market, including: Best Accountant for Contractors, Accountant of the Year and Best Professional Service Team to name just a few.
  • All inclusive low cost fixed fee accountancy package which includes completion of accounts*, payroll bureau, dividends and corporation tax computations, personal taxation, free bookkeeping software, your own dedicated accountant* and all company returns for a fixed fee starting from £120 plus VAT per month. Check our packages for more detail.

If you have any questions about contracting or would like any further advice please call our new client services helpdesk on 01442 275789 or email: Our new client services helpdesk is open Monday to Friday (8am to 6pm).

Appoint SJD Accountancy and never worry about your tax or accountancy affairs again.

Form your own Limited company with SJD - our same day online company formation service includes company bank account set up, VAT/PAYE registration and advice on optimum share structure. 

You may also find the following pages, guides and case studies useful:

*If you would like us to complete your company year end accounts we simply ask that you have been a client of SJD for one year or have made 12 monthly payments. All accountants are part or fully qualified.