£725 a day take-home pay
A £725/day contract is worth about £159,500 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 | £725 |
| Billable days assumed | 220 |
| Gross annual contract value | £159,500 |
| Take-home — inside IR35 (umbrella) | £84,793 |
| Take-home — outside IR35 (limited) | £92,581 |
| Difference | £7,788 |
At £725/day, Outside IR35 (limited company) leaves you £7,788/year better off.
Adjust the numbers
Change days worked, salary, expenses or umbrella margin to match your situation.
Inside IR35 (umbrella)
£84,793/yr
You keep 53% of the contract value
Assignment rate£159,500
Umbrella margin-£1,150
Employer NI-£19,912
Apprenticeship levy-£689
Income tax (PAYE)-£48,190
Employee NI-£4,766
Take-home pay£84,793
Outside IR35 (limited company)
£92,581/yr
You keep 58% of the contract value
Company revenue£159,500
Director salary-£12,570
Employer NI on salary-£1,136
Corporation tax-£34,886
Dividend tax-£30,898
Income tax + NI on salary-£0
Take-home pay£92,581
Outside IR35 (limited company) leaves you £7,788/year better off at this rate.