£425 a day take-home pay
A £425/day contract is worth about £93,500 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 | £425 |
| Billable days assumed | 220 |
| Gross annual contract value | £93,500 |
| Take-home — inside IR35 (umbrella) | £57,309 |
| Take-home — outside IR35 (limited) | £63,378 |
| Difference | £6,069 |
At £425/day, Outside IR35 (limited company) leaves you £6,069/year better off.
Adjust the numbers
Change days worked, salary, expenses or umbrella margin to match your situation.
Inside IR35 (umbrella)
£57,309/yr
You keep 61% of the contract value
Assignment rate£93,500
Umbrella margin-£1,150
Employer NI-£11,341
Apprenticeship levy-£403
Income tax (PAYE)-£19,674
Employee NI-£3,623
Take-home pay£57,309
Outside IR35 (limited company)
£63,378/yr
You keep 68% of the contract value
Company revenue£93,500
Director salary-£12,570
Employer NI on salary-£1,136
Corporation tax-£17,396
Dividend tax-£11,591
Income tax + NI on salary-£0
Take-home pay£63,378
Outside IR35 (limited company) leaves you £6,069/year better off at this rate.