£1275 a day take-home pay
A £1275/day contract is worth about £280,500 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 | £1,275 |
| Billable days assumed | 220 |
| Gross annual contract value | £280,500 |
| Take-home — inside IR35 (umbrella) | £140,317 |
| Take-home — outside IR35 (limited) | £146,558 |
| Difference | £6,241 |
At £1275/day, Outside IR35 (limited company) leaves you £6,241/year better off.
Adjust the numbers
Change days worked, salary, expenses or umbrella margin to match your situation.
Inside IR35 (umbrella)
£140,317/yr
You keep 50% of the contract value
Assignment rate£280,500
Umbrella margin-£1,150
Employer NI-£35,627
Apprenticeship levy-£1,213
Income tax (PAYE)-£95,333
Employee NI-£6,861
Take-home pay£140,317
Outside IR35 (limited company)
£146,558/yr
You keep 52% of the contract value
Company revenue£280,500
Director salary-£12,570
Employer NI on salary-£1,136
Corporation tax-£66,699
Dividend tax-£66,108
Income tax + NI on salary-£0
Take-home pay£146,558
Outside IR35 (limited company) leaves you £6,241/year better off at this rate.