£975 a day take-home pay
A £975/day contract is worth about £214,500 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 | £975 |
| Billable days assumed | 220 |
| Gross annual contract value | £214,500 |
| Take-home — inside IR35 (umbrella) | £110,031 |
| Take-home — outside IR35 (limited) | £116,984 |
| Difference | £6,953 |
At £975/day, Outside IR35 (limited company) leaves you £6,953/year better off.
Adjust the numbers
Change days worked, salary, expenses or umbrella margin to match your situation.
Inside IR35 (umbrella)
£110,031/yr
You keep 51% of the contract value
Assignment rate£214,500
Umbrella margin-£1,150
Employer NI-£27,055
Apprenticeship levy-£927
Income tax (PAYE)-£69,619
Employee NI-£5,718
Take-home pay£110,031
Outside IR35 (limited company)
£116,984/yr
You keep 55% of the contract value
Company revenue£214,500
Director salary-£12,570
Employer NI on salary-£1,136
Corporation tax-£49,461
Dividend tax-£46,920
Income tax + NI on salary-£0
Take-home pay£116,984
Outside IR35 (limited company) leaves you £6,953/year better off at this rate.