£1325 a day take-home pay

A £1325/day contract is worth about £291,500 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 £1,325
Billable days assumed 220
Gross annual contract value £291,500
Take-home — inside IR35 (umbrella) £145,365
Take-home — outside IR35 (limited) £151,562
Difference £6,197

At £1325/day, Outside IR35 (limited company) leaves you £6,197/year better off.

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Change days worked, salary, expenses or umbrella margin to match your situation.

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Inside IR35 (umbrella)

£145,365/yr

You keep 50% of the contract value

Assignment rate£291,500
Umbrella margin-£1,150
Employer NI-£37,055
Apprenticeship levy-£1,260
Income tax (PAYE)-£99,619
Employee NI-£7,051
Take-home pay£145,365

Outside IR35 (limited company)

£151,562/yr

You keep 52% of the contract value

Company revenue£291,500
Director salary-£12,570
Employer NI on salary-£1,136
Corporation tax-£69,449
Dividend tax-£69,354
Income tax + NI on salary-£0
Take-home pay£151,562

Outside IR35 (limited company) leaves you £6,197/year better off at this rate.