£1000 a day take-home pay
A £1000/day contract is worth about £220,000 a year over 220 billable days. Here is roughly what you keep under each IR35 status for 2025/26 — and you can fine-tune every assumption below.
| Day rate | £1,000 |
| Billable days assumed | 220 |
| Gross annual contract value | £220,000 |
| Take-home — inside IR35 (umbrella) | £112,555 |
| Take-home — outside IR35 (limited) | £119,436 |
| Difference | £6,881 |
At £1000/day, Outside IR35 (limited company) leaves you £6,881/year better off.
Adjust the numbers
Change days worked, salary, expenses or umbrella margin to match your situation.
Inside IR35 (umbrella)
£112,555/yr
You keep 51% of the contract value
Assignment rate£220,000
Umbrella margin-£1,150
Employer NI-£27,769
Apprenticeship levy-£951
Income tax (PAYE)-£71,761
Employee NI-£5,813
Take-home pay£112,555
Outside IR35 (limited company)
£119,436/yr
You keep 54% of the contract value
Company revenue£220,000
Director salary-£12,570
Employer NI on salary-£1,136
Corporation tax-£50,918
Dividend tax-£48,510
Income tax + NI on salary-£0
Take-home pay£119,436
Outside IR35 (limited company) leaves you £6,881/year better off at this rate.