£1050 a day take-home pay
A £1050/day contract is worth about £231,000 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 | £1,050 |
| Billable days assumed | 220 |
| Gross annual contract value | £231,000 |
| Take-home — inside IR35 (umbrella) | £117,603 |
| Take-home — outside IR35 (limited) | £124,340 |
| Difference | £6,737 |
At £1050/day, Outside IR35 (limited company) leaves you £6,737/year better off.
Adjust the numbers
Change days worked, salary, expenses or umbrella margin to match your situation.
Inside IR35 (umbrella)
£117,603/yr
You keep 51% of the contract value
Assignment rate£231,000
Umbrella margin-£1,150
Employer NI-£29,198
Apprenticeship levy-£998
Income tax (PAYE)-£76,047
Employee NI-£6,004
Take-home pay£117,603
Outside IR35 (limited company)
£124,340/yr
You keep 54% of the contract value
Company revenue£231,000
Director salary-£12,570
Employer NI on salary-£1,136
Corporation tax-£53,833
Dividend tax-£51,692
Income tax + NI on salary-£0
Take-home pay£124,340
Outside IR35 (limited company) leaves you £6,737/year better off at this rate.