£875 a day take-home pay
A £875/day contract is worth about £192,500 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 | £875 |
| Billable days assumed | 220 |
| Gross annual contract value | £192,500 |
| Take-home — inside IR35 (umbrella) | £99,936 |
| Take-home — outside IR35 (limited) | £107,177 |
| Difference | £7,241 |
At £875/day, Outside IR35 (limited company) leaves you £7,241/year better off.
Adjust the numbers
Change days worked, salary, expenses or umbrella margin to match your situation.
Inside IR35 (umbrella)
£99,936/yr
You keep 52% of the contract value
Assignment rate£192,500
Umbrella margin-£1,150
Employer NI-£24,198
Apprenticeship levy-£832
Income tax (PAYE)-£61,047
Employee NI-£5,337
Take-home pay£99,936
Outside IR35 (limited company)
£107,177/yr
You keep 56% of the contract value
Company revenue£192,500
Director salary-£12,570
Employer NI on salary-£1,136
Corporation tax-£43,631
Dividend tax-£40,557
Income tax + NI on salary-£0
Take-home pay£107,177
Outside IR35 (limited company) leaves you £7,241/year better off at this rate.