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Contractor Margin Checker
UK Recruitment
Charge Rate
£ /day
Pay Rate
£ /day
Days / Week
days
Contract Length
weeks
UK Recruitment Toolkit

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Contractor
Margin Calculator

Enter the charge rate and pay rate — see your margin in £ per day, per week, and across the full contract instantly.

Contractor Margin
UK · 2024/25
Charge Rate (£/day)
£
Pay Rate (£/day)
£
Days per Week
days
Contract Weeks
wks
Include Employer NI? (13.8% above £9,100)
How it works
1

Enter charge & pay rates

The day rate you bill the client, and the day rate you pay your contractor.

2

Set the contract parameters

Days per week and contract length. Typical contracts run 3–6 months.

3

See your margin instantly

Daily margin, weekly margin, and total contract value — updated live as you type.

// Gross margin
margin_day = charge_rate - pay_rate
margin_pct = (margin_day / charge_rate) × 100

// Employer NI (if applicable)
eni = MAX(0, (pay_rate × days - 175) × 0.138)
net_margin = margin_day - (eni / days)
Permanent Placement
Fee Calculator

Calculate your placement fee from a salary and percentage, with split-fee and rebate-net figures included.

Perm Placement Fee
UK Recruitment
Candidate Annual Salary (£)
£
Fee % of Salary
%
Split Fee? (%)
% out
Rebate Period
Placement fees explained
1

Enter the salary

The agreed annual salary the candidate will receive in their new role.

2

Set your fee percentage

Typically 12–20% for permanent roles. Senior or specialist roles often command higher.

3

Add splits & rebates

If splitting with another consultant or desk, enter the outgoing %. Rebate periods reduce the figure you keep if the candidate leaves early.

// Gross fee
fee = salary × (pct / 100)

// After split
net_fee = fee × (1 - split_pct / 100)

// Rebate risk (sliding)
at_risk = fee × rebate_factor
Salary to
Day Rate Converter

Convert an annual salary to a contractor day rate — and back again. Includes uplift for holiday, pension and NI the contractor must now fund themselves.

Salary ↔ Day Rate
UK 2024/25
Annual Salary (£)
£
Working Days/Year
Uplift for Benefits
Why the uplift matters
1

Bare day rate

Salary ÷ 230 working days. Doesn't account for benefits a PAYE employee receives automatically.

2

The missing benefits

Holiday pay, employer pension contributions, sick pay, equipment — a contractor funds these from their rate.

3

The fair rate

+15–25% uplift gives a like-for-like comparison. Use this when advising candidates moving from PAYE to contract.

// Base day rate
day_rate = salary / working_days

// With uplift
fair_rate = day_rate × uplift_factor

// Annual contract value
contract_val = fair_rate × working_days
Holiday Pay
Accrual Calculator

For PAYE contractors working through an agency — calculate the statutory holiday pay accruing on their assignments under UK Working Time Regulations.

Holiday Pay Accrual
WTR 1998
Day Rate (£/day)
£
Days Worked
Holiday Model
Holiday pay — the key facts
1

28 days statutory minimum

UK workers are entitled to 28 days paid leave per year under the Working Time Regulations 1998.

2

12.07% rule

For variable-hours workers, 12.07% of all pay earned is the equivalent of 28 days' holiday. Simple and auditable.

3

Rolled up vs accrued

Rolled up adds 12.07% to each payment. Accrued builds a pot paid out when holiday is taken or contract ends.

// 12.07% method
hol_pay = (days_worked × day_rate) × 0.1207

// Accrued days
hol_days = days_worked × (28 / 260)
hol_value = hol_days × day_rate
Rebate Window
Calculator

If a permanent candidate leaves within your rebate period, how much do you owe back? Calculate the sliding-scale rebate on any placement fee.

Perm Rebate Calculator
Sliding Scale
Original Fee (£)
£
Weeks in Role
wks
Rebate Terms
How sliding rebates work
1

Full rebate window

If the candidate leaves in the first quarter of the rebate period, typically 100% of the fee is returned.

2

Sliding scale

The longer they stay, the less you owe. Common structures drop to 50%, then 25% as the weeks pass.

3

Replacement clause

Many terms offer a replacement candidate rather than cash back — factor this into your client conversation early.

// 8-week sliding example
weeks 1–2 100% rebate
weeks 3–4 75% rebate
weeks 5–6 50% rebate
weeks 7–8 25% rebate
week 9+ 0% rebate
Umbrella
Take-Home Calculator

Estimate a contractor's net take-home pay through an umbrella company, after Income Tax, Employee & Employer NI, and umbrella margin.

Umbrella Take-Home
2024/25 Tax Year
Assignment Rate (£/day)
£
Days/Week
Umbrella Margin
£ /wk
Tax Code
Umbrella deductions explained
1

Employer NI first

The umbrella deducts Employer NI (13.8%) from the assignment rate before the contractor sees a penny.

2

Umbrella margin

Usually £15–30/week. Some companies hide this — transparency here builds trust with your contractors.

3

Then PAYE deductions

Income Tax and Employee NI apply to whatever's left. The result is the contractor's actual take-home.

// Weekly gross
gross = day_rate × days_per_week

// After Employer NI + umbrella fee
taxable = gross - eni - umbrella_margin

// After Income Tax + Employee NI
take_home = taxable - income_tax - ee_ni

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