£275 a day take-home pay
A £275/day contract is worth about £60,500 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 | £275 |
| Billable days assumed | 220 |
| Gross annual contract value | £60,500 |
| Take-home — inside IR35 (umbrella) | £40,737 |
| Take-home — outside IR35 (limited) | £47,150 |
| Difference | £6,412 |
At £275/day, Outside IR35 (limited company) leaves you £6,412/year better off.
Adjust the numbers
Change days worked, salary, expenses or umbrella margin to match your situation.
Inside IR35 (umbrella)
£40,737/yr
You keep 67% of the contract value
Assignment rate£60,500
Umbrella margin-£1,150
Employer NI-£7,055
Apprenticeship levy-£260
Income tax (PAYE)-£8,246
Employee NI-£3,051
Take-home pay£40,737
Outside IR35 (limited company)
£47,150/yr
You keep 78% of the contract value
Company revenue£60,500
Director salary-£12,570
Employer NI on salary-£1,136
Corporation tax-£8,891
Dividend tax-£3,324
Income tax + NI on salary-£0
Take-home pay£47,150
Outside IR35 (limited company) leaves you £6,412/year better off at this rate.