Salary to Day Rate Calculator UK 2026/27
Work out what day rate your salary is worth — or what salary your day rate pays. Two proven methods plus a sole-trader net-equivalent.
220 standard (salary conversion), 200 budget planning.
Added on top for the employer-cost view.
Rule of thumb: 20-35% for lost benefits.
How do I convert a salary to a day rate in 2026/27?
Three methods, three honest answers. Rule of thumb: £50,000 × 1.3 ÷ 220 days = £295/day — the 30% covers holidays, sick pay, pension and gaps. Employer cost: a £60,000 employee actually costs the client ~£68,550 once employer NI (15% above £5,000), the apprenticeship levy (0.5%) and auto-enrolment pension (3%) are added — at 200 days that is ~£343/day to the client. Net equivalent: this calculator also tells you the day rate that leaves a sole trader with the same take-home as your salary — usually lower, because a contractor has no employer NI or pension to carry.
What salary is equal to a £400/day contract?
£400 × 220 days bills £88,000 — but that is revenue, not profit. After employer NI, levy and pension it funds a salary of roughly £75,700. As an employee you would also pay 8% employee NI and 20-40% income tax on it; as a contractor through a limited company you instead pay 19% corporation tax on profit above £12,570 of salary, so £400/day usually leaves you with more take-home than a £75K permanent job.
How much does a £60,000 salary cost an employer in 2026?
About £68,550. Employer NI is 15% on everything above £5,000 = £8,250. The apprenticeship levy is 0.5% of payroll = £300. Auto-enrolment pension is 3% on qualifying earnings (£6,240-£50,270) = £1,320.90. The rule of thumb of “salary + 30%” overestimates slightly at low salaries and underestimates once the employer NI secondary threshold and pension cap are considered.
What are the 2026/27 auto-enrolment pension rates?
Total minimum 8% of qualifying earnings: 3% employer + 5% employee (LITRG, MoneyHelper). Qualifying earnings are pay between £6,240 and £50,270 — nothing is due on the first £6,240. Employees earning £10,000+ must be auto-enrolled. Many contractors forget that switching from a salary to contracting removes employer pension contributions — add at least 3-5% to your rate to replace them.
200 or 220 working days — which should I use?
220 assumes you work every non-bank-holiday weekday; 200 is the standard contractor planning number (allowing for gaps, training, admin and sick leave). Every 20 days of assumed work changes the day rate by ~5%. Recruiters often quote 220 to make rates look lower; accountants model on 200 for cash flow safety.
Estimates only, 2026/27 tax year — see HMRC PAYE & auto-enrolment guidance and a qualified accountant for your situation.
Disclaimer
Indicative estimate based on the rules in force on the verification date. This is not tax advice: always confirm with the tax authority, social security office or your accountant, because your own case may involve allowances, deductions or deadlines.
- Data verified on
- 21.10.2026
How to BECOME
Register with the social security authority for your country and apply for the reduced starter rate if you qualify. The contribution base can be changed 6 times a year.
How to become self-employedHow to become self-employed: step by step
Six steps with the real deadlines and the official links. Order matters: the registration date is what opens the window for the reduced rate and the VAT threshold.
Two questions decide your structure before you invoice anyone. First, IR35: if your client ends the contract and pays a substitute worker, the client checks your status. If your own limited company is between you and the client, that client is outside IR35 — but clients do check. Second, VAT: you must register if your turnover exceeds £90,000 in any 12 months (from 1 April 2025) — the registration threshold is not a tax allowance.
gov.uk — VAT registration threshold →
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