£500 a day take-home pay
A £500/day contract is worth about £110,000 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 | £500 |
| Billable days assumed | 220 |
| Gross annual contract value | £110,000 |
| Take-home — inside IR35 (umbrella) | £65,595 |
| Take-home — outside IR35 (limited) | £71,413 |
| Difference | £5,818 |
At £500/day, Outside IR35 (limited company) leaves you £5,818/year better off.
Adjust the numbers
Change days worked, salary, expenses or umbrella margin to match your situation.
Inside IR35 (umbrella)
£65,595/yr
You keep 60% of the contract value
Assignment rate£110,000
Umbrella margin-£1,150
Employer NI-£13,484
Apprenticeship levy-£474
Income tax (PAYE)-£25,389
Employee NI-£3,908
Take-home pay£65,595
Outside IR35 (limited company)
£71,413/yr
You keep 65% of the contract value
Company revenue£110,000
Director salary-£12,570
Employer NI on salary-£1,136
Corporation tax-£21,768
Dividend tax-£15,684
Income tax + NI on salary-£0
Take-home pay£71,413
Outside IR35 (limited company) leaves you £5,818/year better off at this rate.