What does a permanent employee take home on £90,000?

£62,757 a year after £23,432 Income Tax and £3,811 employee National Insurance under PAYE (2026/27). Source: HMRC (OGL v3.0).

What does an outside-IR35 contractor net on £90,000 of billings?

About £62,470 using a £12,570 director's salary plus £62,718 of dividends after £14,712 Corporation Tax (19%) and £12,818 dividend tax. This is a simplified model on real HMRC rates — it ignores expenses, VAT, accountancy fees and pension. Source: GOV.UK Corporation Tax + dividend rates (OGL v3.0).

Is contracting worth it at £90,000?

On these figures a permanent role keeps about £287 more a year once you assume a £12,570 director's salary — and also includes holiday, pension and sick pay. This is a model, not advice.

GeraJobs / Contractor vs Permanent / £90,000

Contractor vs Permanent on £90,000 (2026/27)

Permanent PAYE: £62,757 net. Outside-IR35 contractor: £62,470 net — £287 less a year.

Contractor vs permanent net on £90,000 in the UK (2026/27)?

At £90,000 equivalent income in 2026/27, a permanent employee nets £62,757 after PAYE, while an outside-IR35 contractor nets about £62,470 (£12,570 salary + dividends after 19% Corporation Tax) — £287 less. Real HMRC rates (OGL v3.0). Simplified model, not tax advice.

Source:GOV.UK — Income Tax rates and Personal Allowance·As of Tax year 2026 to 2027 (6 April 2026 to 5 April 2027) · updated annually (rates change 6 April; council tax 1 April) · last refreshed 19 June 2026

Gera Contractor Premium

Extra net pay contracting outside IR35 vs permanent on £90,000, before expenses and lost benefits. Real HMRC 2026/27 rates.

How this is calculated

−£287 / yr

Breakdown on £90,000

Permanent — Income Tax	£23,432
Permanent — employee NI	£3,811
Permanent net	£62,757
Contractor — Corporation Tax (19%)	£14,712
Contractor — dividends (gross)	£62,718
Contractor — dividend tax	£12,818
Contractor net	£62,470

Contractor vs Permanent Net Calculator (2026/27)

Compare permanent PAYE take-home with an outside-IR35 contractor net (£12,570 director's salary + dividends after 19% Corporation Tax), on real HMRC 2026/27 rates.

Equivalent gross income / billings

Permanent (PAYE)

£62,757

net a year

Contractor (outside IR35)

£62,470

net a year — incl. £14,712 Corp Tax, £12,818 dividend tax

A permanent role keeps £287 more a year on these figures, plus holiday, pension and sick pay.

Browse permanent and contract roles on GeraJobs

Simplified model on real HMRC 2026/27 rates. Ignores expenses, VAT, accountancy fees, pension contributions and IR35 status determination. Not personal tax or financial advice.

Other incomes

Permanent take-home on £90,000 All contractor-vs-permanent figures

Contractor vs permanent on £90,000 — FAQ

What does a permanent employee take home on £90,000?: £62,757 a year after £23,432 Income Tax and £3,811 employee National Insurance under PAYE (2026/27). Source: HMRC (OGL v3.0).
What does an outside-IR35 contractor net on £90,000 of billings?: About £62,470 using a £12,570 director's salary plus £62,718 of dividends after £14,712 Corporation Tax (19%) and £12,818 dividend tax. This is a simplified model on real HMRC rates — it ignores expenses, VAT, accountancy fees and pension. Source: GOV.UK Corporation Tax + dividend rates (OGL v3.0).
Is contracting worth it at £90,000?: On these figures a permanent role keeps about £287 more a year once you assume a £12,570 director's salary — and also includes holiday, pension and sick pay. This is a model, not advice.

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Sources: HMRC — Income Tax + Class 1 employee NI 2026 to 2027; GOV.UK — Corporation Tax (19% small profits) + Tax on dividends (£500 allowance; 10.75% / 35.75% / 39.35%). All Open Government Licence v3.0. Simplified model — ignores expenses, VAT, accountancy fees, pension and IR35 status. Not personal tax advice.