£700 a day take-home pay
A £700/day contract is worth about £154,000 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 | £700 |
| Billable days assumed | 220 |
| Gross annual contract value | £154,000 |
| Take-home — inside IR35 (umbrella) | £82,270 |
| Take-home — outside IR35 (limited) | £90,408 |
| Difference | £8,139 |
At £700/day, Outside IR35 (limited company) leaves you £8,139/year better off.
Adjust the numbers
Change days worked, salary, expenses or umbrella margin to match your situation.
Inside IR35 (umbrella)
£82,270/yr
You keep 53% of the contract value
Assignment rate£154,000
Umbrella margin-£1,150
Employer NI-£19,198
Apprenticeship levy-£665
Income tax (PAYE)-£46,047
Employee NI-£4,670
Take-home pay£82,270
Outside IR35 (limited company)
£90,408/yr
You keep 59% of the contract value
Company revenue£154,000
Director salary-£12,570
Employer NI on salary-£1,136
Corporation tax-£33,428
Dividend tax-£29,028
Income tax + NI on salary-£0
Take-home pay£90,408
Outside IR35 (limited company) leaves you £8,139/year better off at this rate.