£400 a day take-home pay
A £400/day contract is worth about £88,000 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 | £400 |
| Billable days assumed | 220 |
| Gross annual contract value | £88,000 |
| Take-home — inside IR35 (umbrella) | £54,547 |
| Take-home — outside IR35 (limited) | £60,700 |
| Difference | £6,153 |
At £400/day, Outside IR35 (limited company) leaves you £6,153/year better off.
Adjust the numbers
Change days worked, salary, expenses or umbrella margin to match your situation.
Inside IR35 (umbrella)
£54,547/yr
You keep 62% of the contract value
Assignment rate£88,000
Umbrella margin-£1,150
Employer NI-£10,627
Apprenticeship levy-£379
Income tax (PAYE)-£17,770
Employee NI-£3,527
Take-home pay£54,547
Outside IR35 (limited company)
£60,700/yr
You keep 69% of the contract value
Company revenue£88,000
Director salary-£12,570
Employer NI on salary-£1,136
Corporation tax-£15,938
Dividend tax-£10,227
Income tax + NI on salary-£0
Take-home pay£60,700
Outside IR35 (limited company) leaves you £6,153/year better off at this rate.