£600 a day take-home pay

A £600/day contract is worth about £132,000 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 £600
Billable days assumed 220
Gross annual contract value £132,000
Take-home — inside IR35 (umbrella) £73,854
Take-home — outside IR35 (limited) £81,717
Difference £7,862

At £600/day, Outside IR35 (limited company) leaves you £7,862/year better off.

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Inside IR35 (umbrella)

£73,854/yr

You keep 56% of the contract value

Assignment rate£132,000
Umbrella margin-£1,150
Employer NI-£16,341
Apprenticeship levy-£570
Income tax (PAYE)-£35,796
Employee NI-£4,289
Take-home pay£73,854

Outside IR35 (limited company)

£81,717/yr

You keep 62% of the contract value

Company revenue£132,000
Director salary-£12,570
Employer NI on salary-£1,136
Corporation tax-£27,598
Dividend tax-£21,550
Income tax + NI on salary-£0
Take-home pay£81,717

Outside IR35 (limited company) leaves you £7,862/year better off at this rate.