£1175 a day take-home pay
A £1175/day contract is worth about £258,500 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 | £1,175 |
| Billable days assumed | 220 |
| Gross annual contract value | £258,500 |
| Take-home — inside IR35 (umbrella) | £130,222 |
| Take-home — outside IR35 (limited) | £136,598 |
| Difference | £6,377 |
At £1175/day, Outside IR35 (limited company) leaves you £6,377/year better off.
Adjust the numbers
Change days worked, salary, expenses or umbrella margin to match your situation.
Inside IR35 (umbrella)
£130,222/yr
You keep 50% of the contract value
Assignment rate£258,500
Umbrella margin-£1,150
Employer NI-£32,769
Apprenticeship levy-£1,117
Income tax (PAYE)-£86,761
Employee NI-£6,480
Take-home pay£130,222
Outside IR35 (limited company)
£136,598/yr
You keep 53% of the contract value
Company revenue£258,500
Director salary-£12,570
Employer NI on salary-£1,136
Corporation tax-£61,121
Dividend tax-£59,646
Income tax + NI on salary-£0
Take-home pay£136,598
Outside IR35 (limited company) leaves you £6,377/year better off at this rate.