£550 a day take-home pay
A £550/day contract is worth about £121,000 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 | £550 |
| Billable days assumed | 220 |
| Gross annual contract value | £121,000 |
| Take-home — inside IR35 (umbrella) | £70,235 |
| Take-home — outside IR35 (limited) | £76,769 |
| Difference | £6,534 |
At £550/day, Outside IR35 (limited company) leaves you £6,534/year better off.
Adjust the numbers
Change days worked, salary, expenses or umbrella margin to match your situation.
Inside IR35 (umbrella)
£70,235/yr
You keep 58% of the contract value
Assignment rate£121,000
Umbrella margin-£1,150
Employer NI-£14,912
Apprenticeship levy-£522
Income tax (PAYE)-£30,081
Employee NI-£4,099
Take-home pay£70,235
Outside IR35 (limited company)
£76,769/yr
You keep 63% of the contract value
Company revenue£121,000
Director salary-£12,570
Employer NI on salary-£1,136
Corporation tax-£24,683
Dividend tax-£18,413
Income tax + NI on salary-£0
Take-home pay£76,769
Outside IR35 (limited company) leaves you £6,534/year better off at this rate.