Sole Trader vs Employee Calculator: UK Take-Home
Compare sole trader and employee (PAYE) take-home pay on the same gross in the UK. A free estimate by country - not tax advice.
Compare the same gross
Enter an annual gross and a country to estimate what you keep as an employee versus as a self-employed contractor.
Estimate only, not tax advice. Each side uses one average tax-and-social percentage for 2026, not real brackets, and ignores employer costs, VAT, benefits, and deductions. A company form (Limited company) is not modelled because its take-home depends on a salary and dividend split. Confirm with an accountant.
Employee or contractor?
In the UK, employees are taxed through PAYE with income tax and National Insurance, while a sole trader pays income tax and Class 2 and 4 National Insurance on profit. The default is a rough average; a limited company is taxed differently and is not modelled here.
On the same headline pay, an employee and a self-employed contractor rarely keep the same amount. Employees usually have tax and social contributions withheld at source, while the self-employed pay their own, often at different rates, and can deduct business costs. The gap decides how much a day rate really needs to be.
This is a rough, country-level estimate for planning, not a tax return, and it does not cover company structures or your personal deductions. Use it to frame the question, then confirm the numbers with an accountant.
Country questions
Sole trader or limited company?
This compares an employee with a sole trader. A limited company is taxed through corporation tax and a salary and dividend split, which is not modelled here - ask an accountant.
Whichever way you work, track the time
Sandtime.io records billable hours and turns them into reports and invoice-ready totals, for employees and contractors alike. Free for unlimited users, without surveillance.