TAX & SALARY PLANNING

New Hire Calculator

Go beyond salary: Who Should I Hire, And How Much Will This Cost Me?

⊛ 1 min read | By Brent Morrison | November 2025

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Common Questions About Hiring Costs

What are the hidden costs of hiring an employee?
Beyond the gross salary, you must account for Employer National Insurance (currently 15% above the threshold) and mandatory Pension Contributions (minimum 3%). You also need to budget for equipment, software licenses, and potential recruitment fees, which can add 20-30% to the base salary.
How accurate is this New Hire Calculator?
This tool provides a strategic estimate based on current UK tax bands and average overheads. It calculates salary, National Insurance, and pension obligations to give you a realistic "Total Cost of Employment" figure in under 90 seconds, helping you make safer cash flow decisions.
Should I hire a contractor or an employee?
Hiring an employee (PAYE) offers stability and control but comes with higher fixed costs (NI, Pension, Holiday Pay). A contractor offers flexibility and lower overheads but may have higher day rates. Use this calculator to see the full financial commitment of a permanent hire before deciding.
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Brent Morrison. Strategic accountancy partner at OutRise

ABOUT THE AUTHOR

Brent Morrison ACA CTA

Chartered Accountant and Chartered Tax Adviser

Member of the Institute of Chartered Accountants (ICAEW) and Taxation (CIOT) | Director at OutRise | He has over 12 years of experience advising high and fast growth companies across the UK. His approach combines a deep understanding of structuring data and systems, coupled with practical, real-world business experiences.

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