£150 a day take-home pay

A £150/day contract is worth about £33,000 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 £150
Billable days assumed 220
Gross annual contract value £33,000
Take-home — inside IR35 (umbrella) £23,842
Take-home — outside IR35 (limited) £26,875
Difference £3,033

At £150/day, Outside IR35 (limited company) leaves you £3,033/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)

£23,842/yr

You keep 72% of the contract value

Assignment rate£33,000
Umbrella margin-£1,150
Employer NI-£3,484
Apprenticeship levy-£141
Income tax (PAYE)-£3,131
Employee NI-£1,252
Take-home pay£23,842

Outside IR35 (limited company)

£26,875/yr

You keep 81% of the contract value

Company revenue£33,000
Director salary-£12,570
Employer NI on salary-£1,136
Corporation tax-£3,666
Dividend tax-£1,324
Income tax + NI on salary-£0
Take-home pay£26,875

Outside IR35 (limited company) leaves you £3,033/year better off at this rate.