£1225 a day take-home pay
A £1225/day contract is worth about £269,500 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 | £1,225 |
| Billable days assumed | 220 |
| Gross annual contract value | £269,500 |
| Take-home — inside IR35 (umbrella) | £135,270 |
| Take-home — outside IR35 (limited) | £141,555 |
| Difference | £6,285 |
At £1225/day, Outside IR35 (limited company) leaves you £6,285/year better off.
Adjust the numbers
Change days worked, salary, expenses or umbrella margin to match your situation.
Inside IR35 (umbrella)
£135,270/yr
You keep 50% of the contract value
Assignment rate£269,500
Umbrella margin-£1,150
Employer NI-£34,198
Apprenticeship levy-£1,165
Income tax (PAYE)-£91,047
Employee NI-£6,670
Take-home pay£135,270
Outside IR35 (limited company)
£141,555/yr
You keep 53% of the contract value
Company revenue£269,500
Director salary-£12,570
Employer NI on salary-£1,136
Corporation tax-£63,949
Dividend tax-£62,861
Income tax + NI on salary-£0
Take-home pay£141,555
Outside IR35 (limited company) leaves you £6,285/year better off at this rate.