£1025 a day take-home pay
A £1025/day contract is worth about £225,500 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 | £1,025 |
| Billable days assumed | 220 |
| Gross annual contract value | £225,500 |
| Take-home — inside IR35 (umbrella) | £115,079 |
| Take-home — outside IR35 (limited) | £121,888 |
| Difference | £6,809 |
At £1025/day, Outside IR35 (limited company) leaves you £6,809/year better off.
Adjust the numbers
Change days worked, salary, expenses or umbrella margin to match your situation.
Inside IR35 (umbrella)
£115,079/yr
You keep 51% of the contract value
Assignment rate£225,500
Umbrella margin-£1,150
Employer NI-£28,484
Apprenticeship levy-£974
Income tax (PAYE)-£73,904
Employee NI-£5,908
Take-home pay£115,079
Outside IR35 (limited company)
£121,888/yr
You keep 54% of the contract value
Company revenue£225,500
Director salary-£12,570
Employer NI on salary-£1,136
Corporation tax-£52,376
Dividend tax-£50,101
Income tax + NI on salary-£0
Take-home pay£121,888
Outside IR35 (limited company) leaves you £6,809/year better off at this rate.