£350 a day take-home pay

A £350/day contract is worth about £77,000 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 £350
Billable days assumed 220
Gross annual contract value £77,000
Take-home — inside IR35 (umbrella) £49,023
Take-home — outside IR35 (limited) £55,344
Difference £6,320

At £350/day, Outside IR35 (limited company) leaves you £6,320/year better off.

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Inside IR35 (umbrella)

£49,023/yr

You keep 64% of the contract value

Assignment rate£77,000
Umbrella margin-£1,150
Employer NI-£9,198
Apprenticeship levy-£332
Income tax (PAYE)-£13,960
Employee NI-£3,337
Take-home pay£49,023

Outside IR35 (limited company)

£55,344/yr

You keep 72% of the contract value

Company revenue£77,000
Director salary-£12,570
Employer NI on salary-£1,136
Corporation tax-£13,023
Dividend tax-£7,498
Income tax + NI on salary-£0
Take-home pay£55,344

Outside IR35 (limited company) leaves you £6,320/year better off at this rate.