£625 a day take-home pay
A £625/day contract is worth about £137,500 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 | £625 |
| Billable days assumed | 220 |
| Gross annual contract value | £137,500 |
| Take-home — inside IR35 (umbrella) | £75,664 |
| Take-home — outside IR35 (limited) | £83,890 |
| Difference | £8,226 |
At £625/day, Outside IR35 (limited company) leaves you £8,226/year better off.
Adjust the numbers
Change days worked, salary, expenses or umbrella margin to match your situation.
Inside IR35 (umbrella)
£75,664/yr
You keep 55% of the contract value
Assignment rate£137,500
Umbrella margin-£1,150
Employer NI-£17,055
Apprenticeship levy-£594
Income tax (PAYE)-£38,653
Employee NI-£4,385
Take-home pay£75,664
Outside IR35 (limited company)
£83,890/yr
You keep 61% of the contract value
Company revenue£137,500
Director salary-£12,570
Employer NI on salary-£1,136
Corporation tax-£29,056
Dividend tax-£23,419
Income tax + NI on salary-£0
Take-home pay£83,890
Outside IR35 (limited company) leaves you £8,226/year better off at this rate.