£1400 a day take-home pay

A £1400/day contract is worth about £308,000 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 £1,400
Billable days assumed 220
Gross annual contract value £308,000
Take-home — inside IR35 (umbrella) £152,936
Take-home — outside IR35 (limited) £159,067
Difference £6,131

At £1400/day, Outside IR35 (limited company) leaves you £6,131/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)

£152,936/yr

You keep 50% of the contract value

Assignment rate£308,000
Umbrella margin-£1,150
Employer NI-£39,198
Apprenticeship levy-£1,332
Income tax (PAYE)-£106,047
Employee NI-£7,337
Take-home pay£152,936

Outside IR35 (limited company)

£159,067/yr

You keep 52% of the contract value

Company revenue£308,000
Director salary-£12,570
Employer NI on salary-£1,136
Corporation tax-£73,574
Dividend tax-£74,223
Income tax + NI on salary-£0
Take-home pay£159,067

Outside IR35 (limited company) leaves you £6,131/year better off at this rate.