£1300 a day take-home pay
A £1300/day contract is worth about £286,000 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 | £1,300 |
| Billable days assumed | 220 |
| Gross annual contract value | £286,000 |
| Take-home — inside IR35 (umbrella) | £142,841 |
| Take-home — outside IR35 (limited) | £149,060 |
| Difference | £6,219 |
At £1300/day, Outside IR35 (limited company) leaves you £6,219/year better off.
Adjust the numbers
Change days worked, salary, expenses or umbrella margin to match your situation.
Inside IR35 (umbrella)
£142,841/yr
You keep 50% of the contract value
Assignment rate£286,000
Umbrella margin-£1,150
Employer NI-£36,341
Apprenticeship levy-£1,236
Income tax (PAYE)-£97,476
Employee NI-£6,956
Take-home pay£142,841
Outside IR35 (limited company)
£149,060/yr
You keep 52% of the contract value
Company revenue£286,000
Director salary-£12,570
Employer NI on salary-£1,136
Corporation tax-£68,074
Dividend tax-£67,731
Income tax + NI on salary-£0
Take-home pay£149,060
Outside IR35 (limited company) leaves you £6,219/year better off at this rate.