£175 a day take-home pay
A £175/day contract is worth about £38,500 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 | £175 |
| Billable days assumed | 220 |
| Gross annual contract value | £38,500 |
| Take-home — inside IR35 (umbrella) | £27,270 |
| Take-home — outside IR35 (limited) | £30,940 |
| Difference | £3,670 |
At £175/day, Outside IR35 (limited company) leaves you £3,670/year better off.
Adjust the numbers
Change days worked, salary, expenses or umbrella margin to match your situation.
Inside IR35 (umbrella)
£27,270/yr
You keep 71% of the contract value
Assignment rate£38,500
Umbrella margin-£1,150
Employer NI-£4,198
Apprenticeship levy-£165
Income tax (PAYE)-£4,083
Employee NI-£1,633
Take-home pay£27,270
Outside IR35 (limited company)
£30,940/yr
You keep 80% of the contract value
Company revenue£38,500
Director salary-£12,570
Employer NI on salary-£1,136
Corporation tax-£4,711
Dividend tax-£1,714
Income tax + NI on salary-£0
Take-home pay£30,940
Outside IR35 (limited company) leaves you £3,670/year better off at this rate.