How do I work out the day rate I need to hit a specific net income in Gibraltar?

Enter your target net income into the calculator and it will gross the figure up for income tax (the lower of ABS or GIBS) and 20% self-employed social insurance, then divide by your expected billable days to give the day rate you need to charge.

Does this calculator account for the self-employed social insurance cap?

Yes — self-employed social insurance is capped at £2,923.83 per year, so above a certain income level the extra social insurance cost stops rising even though your income tax continues to increase under the ABS or GIBS bands.

What if I don't know how many days a year I'll actually bill?

Try a few different billable-day assumptions in the calculator — the fewer days you expect to bill, the higher the day rate needs to be to reach the same net income target, since fixed costs and social insurance minimums are spread across fewer invoiced days.

Gibraltar Target Day Rate Calculator

What day rate do you need to charge to hit a target net income in Gibraltar

Rather than starting from a day rate and seeing what it nets you, this calculator works backwards from the net income you want to reach, and solves for the day rate needed under the 20% self-employed social insurance rate and whichever of ABS or GIBS gives the lower tax.

How the target is solved for

Enter the net annual income you want to achieve
The calculator grosses this up allowing for income tax under the lower of ABS or GIBS at that income level
Self-employed social insurance at 20% (subject to the £1,583.40 minimum and £2,923.83 maximum) is added on top
The resulting gross income is divided by your realistic billable days to give the day rate you need to charge