£1250 a day take-home pay
A £1250/day contract is worth about £275,000 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 | £1,250 |
| Billable days assumed | 220 |
| Gross annual contract value | £275,000 |
| Take-home — inside IR35 (umbrella) | £137,793 |
| Take-home — outside IR35 (limited) | £144,057 |
| Difference | £6,263 |
At £1250/day, Outside IR35 (limited company) leaves you £6,263/year better off.
Adjust the numbers
Change days worked, salary, expenses or umbrella margin to match your situation.
Inside IR35 (umbrella)
£137,793/yr
You keep 50% of the contract value
Assignment rate£275,000
Umbrella margin-£1,150
Employer NI-£34,912
Apprenticeship levy-£1,189
Income tax (PAYE)-£93,190
Employee NI-£6,766
Take-home pay£137,793
Outside IR35 (limited company)
£144,057/yr
You keep 52% of the contract value
Company revenue£275,000
Director salary-£12,570
Employer NI on salary-£1,136
Corporation tax-£65,324
Dividend tax-£64,484
Income tax + NI on salary-£0
Take-home pay£144,057
Outside IR35 (limited company) leaves you £6,263/year better off at this rate.