£1200 a day take-home pay
A £1200/day contract is worth about £264,000 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 | £1,200 |
| Billable days assumed | 220 |
| Gross annual contract value | £264,000 |
| Take-home — inside IR35 (umbrella) | £132,746 |
| Take-home — outside IR35 (limited) | £139,053 |
| Difference | £6,307 |
At £1200/day, Outside IR35 (limited company) leaves you £6,307/year better off.
Adjust the numbers
Change days worked, salary, expenses or umbrella margin to match your situation.
Inside IR35 (umbrella)
£132,746/yr
You keep 50% of the contract value
Assignment rate£264,000
Umbrella margin-£1,150
Employer NI-£33,484
Apprenticeship levy-£1,141
Income tax (PAYE)-£88,904
Employee NI-£6,575
Take-home pay£132,746
Outside IR35 (limited company)
£139,053/yr
You keep 53% of the contract value
Company revenue£264,000
Director salary-£12,570
Employer NI on salary-£1,136
Corporation tax-£62,574
Dividend tax-£61,238
Income tax + NI on salary-£0
Take-home pay£139,053
Outside IR35 (limited company) leaves you £6,307/year better off at this rate.