Contractor Tax Year Planner

See your estimated tax bill month by month, how much to set aside from each payment, and every deadline in one scrollable timeline. Updated for 2026/27.

✓ No signup required ✓ All calculations in your browser ✓ Updated for 2026/27

Using 2026/27 figures

Your contract details

Your rate before tax and expenses
Standard UK contractor year is 230 days. Adjust for your situation.
The month you started or will start your current contract
Most Ltd directors take £5,000 — the employer NI threshold
Your company's accounting year end. Most use 31 March.

Enter your day rate or annual contract value to see your tax year plan.

How are these estimates calculated?

Ltd company / Outside IR35: Your annual contract income is your day rate multiplied by your working days. Corporation tax is calculated on company profit after deducting your salary (19% on profits up to £50,000, 25% above). The remaining after-tax profit is treated as dividends. Dividend tax is calculated at 8.75% within the basic rate band and 33.75% above £50,270 total income. Corporation tax is due 9 months and 1 day after your company year end. Personal tax (dividend tax) is due 31 January.

Sole trader / Inside IR35: Income tax is calculated on annual profit after the personal allowance (£12,570). Class 4 National Insurance is calculated at 9% on profits between £12,570 and £50,270, and 2% above that. All tax is due 31 January. Payments on account are 50% of your estimated annual bill, due 31 January and 31 July. The set-aside percentage is your estimated total annual tax as a percentage of gross income.

Common questions

How much should a contractor set aside for tax each month?

As a rough guide, Ltd company contractors outside IR35 should set aside around 20-25% of their gross contract income for corporation tax and dividend tax. Sole traders and contractors inside IR35 should set aside 25-35% depending on their income level. This planner calculates your specific monthly set-aside amount based on your day rate and structure.

When do contractors pay tax?

Contractors pay Self Assessment tax by 31 January following the end of the tax year, with a second payment on account due 31 July. Ltd company directors also pay corporation tax 9 months and 1 day after their company year end. This planner shows all deadlines in a month-by-month timeline.

What is a payment on account?

Payments on account are advance payments toward your next tax bill. HMRC requires two per year — 31 January and 31 July — each equal to 50% of your previous year's tax bill. First-time filers pay their full current year bill plus the first payment on account in January, which often comes as a surprise.

Do Ltd company contractors pay tax differently from sole traders?

Yes. Ltd company contractors pay corporation tax on company profits (9 months after year end) and personal dividend tax through Self Assessment (31 January). Sole traders pay all tax through Self Assessment by 31 January, with payments on account in July. This planner handles both structures.

When does the UK tax year end?

The UK tax year runs from 6 April to 5 April the following year. The 2026/27 tax year runs from 6 April 2026 to 5 April 2027. The online Self Assessment filing deadline is 31 January 2027 for the 2025/26 tax year.

This planner provides estimates only and does not constitute tax, legal or financial advice. Payment dates depend on your specific company year end and personal circumstances. Payments on account are only required if your previous year's tax bill exceeded £1,000. Always verify deadlines and amounts with HMRC or a qualified accountant before making tax payments.

Want an accountant to manage all of this for you?

Contractor accountants like Gorilla Accounting and Crunch offer fixed-fee packages covering your company accounts, Self Assessment and payroll — typically £800–£1,500 per year.

Find a contractor accountant →