£225 a day take-home pay
A £225/day contract is worth about £49,500 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 | £225 |
| Billable days assumed | 220 |
| Gross annual contract value | £49,500 |
| Take-home — inside IR35 (umbrella) | £34,127 |
| Take-home — outside IR35 (limited) | £39,070 |
| Difference | £4,943 |
At £225/day, Outside IR35 (limited company) leaves you £4,943/year better off.
Adjust the numbers
Change days worked, salary, expenses or umbrella margin to match your situation.
Inside IR35 (umbrella)
£34,127/yr
You keep 69% of the contract value
Assignment rate£49,500
Umbrella margin-£1,150
Employer NI-£5,627
Apprenticeship levy-£213
Income tax (PAYE)-£5,988
Employee NI-£2,395
Take-home pay£34,127
Outside IR35 (limited company)
£39,070/yr
You keep 79% of the contract value
Company revenue£49,500
Director salary-£12,570
Employer NI on salary-£1,136
Corporation tax-£6,801
Dividend tax-£2,493
Income tax + NI on salary-£0
Take-home pay£39,070
Outside IR35 (limited company) leaves you £4,943/year better off at this rate.