Allow for gaps between contracts; many contractors bill 180 to 200.

Accountant, insurance, software and kit, a year.

Enter the employer contribution your permanent job pays.

Day rate to break even£278
What you are matching
Permanent salary£60,000.00
Income tax− £11,432.00
Employee NI− £3,210.60
Employee take-home£45,357.40
Day rate giving the same take-home via a Ltd£277.20
Rule of thumb: salary ÷ 220 × 1.25£340.91

Break-even ignores what you give up as a contractor, such as paid holiday, sick pay, employer pension and notice, so quote above it.

Free day rate calculator by ContractorSums, 2026/27 rates.