£850 a day take-home pay
A £850/day contract is worth about £187,000 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 | £850 |
| Billable days assumed | 220 |
| Gross annual contract value | £187,000 |
| Take-home — inside IR35 (umbrella) | £97,412 |
| Take-home — outside IR35 (limited) | £104,725 |
| Difference | £7,313 |
At £850/day, Outside IR35 (limited company) leaves you £7,313/year better off.
Adjust the numbers
Change days worked, salary, expenses or umbrella margin to match your situation.
Inside IR35 (umbrella)
£97,412/yr
You keep 52% of the contract value
Assignment rate£187,000
Umbrella margin-£1,150
Employer NI-£23,484
Apprenticeship levy-£808
Income tax (PAYE)-£58,904
Employee NI-£5,242
Take-home pay£97,412
Outside IR35 (limited company)
£104,725/yr
You keep 56% of the contract value
Company revenue£187,000
Director salary-£12,570
Employer NI on salary-£1,136
Corporation tax-£42,173
Dividend tax-£38,966
Income tax + NI on salary-£0
Take-home pay£104,725
Outside IR35 (limited company) leaves you £7,313/year better off at this rate.