£650 a day take-home pay
A £650/day contract is worth about £143,000 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 | £650 |
| Billable days assumed | 220 |
| Gross annual contract value | £143,000 |
| Take-home — inside IR35 (umbrella) | £77,473 |
| Take-home — outside IR35 (limited) | £86,063 |
| Difference | £8,589 |
At £650/day, Outside IR35 (limited company) leaves you £8,589/year better off.
Adjust the numbers
Change days worked, salary, expenses or umbrella margin to match your situation.
Inside IR35 (umbrella)
£77,473/yr
You keep 54% of the contract value
Assignment rate£143,000
Umbrella margin-£1,150
Employer NI-£17,769
Apprenticeship levy-£617
Income tax (PAYE)-£41,510
Employee NI-£4,480
Take-home pay£77,473
Outside IR35 (limited company)
£86,063/yr
You keep 60% of the contract value
Company revenue£143,000
Director salary-£12,570
Employer NI on salary-£1,136
Corporation tax-£30,513
Dividend tax-£25,289
Income tax + NI on salary-£0
Take-home pay£86,063
Outside IR35 (limited company) leaves you £8,589/year better off at this rate.