£1125 a day take-home pay
A £1125/day contract is worth about £247,500 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 | £1,125 |
| Billable days assumed | 220 |
| Gross annual contract value | £247,500 |
| Take-home — inside IR35 (umbrella) | £125,174 |
| Take-home — outside IR35 (limited) | £131,695 |
| Difference | £6,521 |
At £1125/day, Outside IR35 (limited company) leaves you £6,521/year better off.
Adjust the numbers
Change days worked, salary, expenses or umbrella margin to match your situation.
Inside IR35 (umbrella)
£125,174/yr
You keep 51% of the contract value
Assignment rate£247,500
Umbrella margin-£1,150
Employer NI-£31,341
Apprenticeship levy-£1,070
Income tax (PAYE)-£82,476
Employee NI-£6,289
Take-home pay£125,174
Outside IR35 (limited company)
£131,695/yr
You keep 53% of the contract value
Company revenue£247,500
Director salary-£12,570
Employer NI on salary-£1,136
Corporation tax-£58,206
Dividend tax-£56,464
Income tax + NI on salary-£0
Take-home pay£131,695
Outside IR35 (limited company) leaves you £6,521/year better off at this rate.