£125 a day take-home pay
A £125/day contract is worth about £27,500 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 | £125 |
| Billable days assumed | 220 |
| Gross annual contract value | £27,500 |
| Take-home — inside IR35 (umbrella) | £20,413 |
| Take-home — outside IR35 (limited) | £22,810 |
| Difference | £2,397 |
At £125/day, Outside IR35 (limited company) leaves you £2,397/year better off.
Adjust the numbers
Change days worked, salary, expenses or umbrella margin to match your situation.
Inside IR35 (umbrella)
£20,413/yr
You keep 74% of the contract value
Assignment rate£27,500
Umbrella margin-£1,150
Employer NI-£2,769
Apprenticeship levy-£117
Income tax (PAYE)-£2,179
Employee NI-£871
Take-home pay£20,413
Outside IR35 (limited company)
£22,810/yr
You keep 83% of the contract value
Company revenue£27,500
Director salary-£12,570
Employer NI on salary-£1,136
Corporation tax-£2,621
Dividend tax-£934
Income tax + NI on salary-£0
Take-home pay£22,810
Outside IR35 (limited company) leaves you £2,397/year better off at this rate.