IR35 · 2026/27 tax year
Contractor take-home by day rate, 2026/27
Find your day rate to see what you take home inside IR35 through an umbrella company and outside IR35 through your own limited company. At £500 a day for 220 days, that is £65,620 inside and £69,224 outside, a gap of £3,604 a year.
Figures checked against GOV.UK on .
Day rates covered
£200–£1,500
37 rates
£500 a day inside
£65,620
take-home a year
£500 a day outside
£69,224
take-home a year
Days assumed
220
billable days a year
Take-home pay by day rate
Yearly figures for 220 billable days. Open a rate for the full breakdown.
| Day rate | Billed a year | Inside IR35 | Outside IR35 | Difference |
|---|---|---|---|---|
| £200 | £44,000 | £30,730 | £33,440 | £2,710 |
| £225 | £49,500 | £34,159 | £37,416 | £3,258 |
| £250 | £55,000 | £37,587 | £41,392 | £3,805 |
| £275 | £60,500 | £40,763 | £45,368 | £4,606 |
| £300 | £66,000 | £43,525 | £48,445 | £4,921 |
| £325 | £71,500 | £46,286 | £51,043 | £4,756 |
| £350 | £77,000 | £49,048 | £53,640 | £4,592 |
| £375 | £82,500 | £51,810 | £56,237 | £4,427 |
| £400 | £88,000 | £54,572 | £58,834 | £4,262 |
| £425 | £93,500 | £57,334 | £61,432 | £4,098 |
| £450 | £99,000 | £60,096 | £64,029 | £3,933 |
| £475 | £104,500 | £62,858 | £66,626 | £3,769 |
| £500 | £110,000 | £65,620 | £69,224 | £3,604 |
| £525 | £115,500 | £68,382 | £71,821 | £3,439 |
| £550 | £121,000 | £70,252 | £74,418 | £4,166 |
| £575 | £126,500 | £72,061 | £77,016 | £4,954 |
| £600 | £132,000 | £73,871 | £79,126 | £5,255 |
| £625 | £137,500 | £75,680 | £80,814 | £5,133 |
| £650 | £143,000 | £77,490 | £82,502 | £5,012 |
| £675 | £148,500 | £79,769 | £84,190 | £4,421 |
| £700 | £154,000 | £82,292 | £85,877 | £3,585 |
| £725 | £159,500 | £84,816 | £87,565 | £2,749 |
| £750 | £165,000 | £87,340 | £89,494 | £2,154 |
| £775 | £170,500 | £89,864 | £91,946 | £2,082 |
| £800 | £176,000 | £92,388 | £94,398 | £2,010 |
| £825 | £181,500 | £94,912 | £96,849 | £1,938 |
| £850 | £187,000 | £97,435 | £99,301 | £1,866 |
| £875 | £192,500 | £99,959 | £101,753 | £1,794 |
| £900 | £198,000 | £102,483 | £104,205 | £1,722 |
| £925 | £203,500 | £105,007 | £106,657 | £1,650 |
| £950 | £209,000 | £107,531 | £109,108 | £1,578 |
| £975 | £214,500 | £110,054 | £111,560 | £1,506 |
| £1,000 | £220,000 | £112,578 | £114,012 | £1,434 |
| £1,100 | £242,000 | £122,673 | £123,819 | £1,146 |
| £1,200 | £264,000 | £132,769 | £133,626 | £857 |
| £1,250 | £275,000 | £137,816 | £138,619 | £803 |
| £1,500 | £330,000 | £163,054 | £163,637 | £583 |
Why the gap has narrowed
From April 2026 dividend tax went up to 10.75% in the basic-rate band and 35.75% in the higher-rate band, while Corporation Tax stays at 19% to 25%. Outside IR35 still comes out ahead at every rate in the table, but by less than it did a few years ago.
Umbrella rates and PAYE rates
These figures treat the day rate as an umbrella rate, which has to pay employer National Insurance and the Apprenticeship Levy. If an agency quotes a PAYE rate instead, those costs are already paid on top, so your take-home at the same headline rate is higher.
Guides and definitions
- High Income Child Benefit Charge: how it is worked out and cut (Guide)
- How to read your payslip: every line explained, with an example (Guide)
- National Insurance rates 2026/27: what you pay and how it works (Guide)
- Emergency tax code (An emergency tax code, marked W1, M1 or X, taxes each payday on its own, as if you were paid that amount every period of the year.)
- Marginal tax rate (Your marginal tax rate is the share of your next pound or dollar of income that goes in tax and deductions.)
- P11D (A P11D is the form UK employers send HMRC by 6 July to report each employee's taxable benefits and expenses that were not taxed through payroll.)
- P60 (A P60 is the yearly summary of your pay and tax from one employer, due by 31 May if you work there on 5 April.)
- Personal Allowance (The Personal Allowance is the income you can earn each UK tax year before Income Tax starts: £12,570 for 2026/27.)
Day rate pages
- £200 a day (£30,730 in · £33,440 out)
- £225 a day (£34,159 in · £37,416 out)
- £250 a day (£37,587 in · £41,392 out)
- £275 a day (£40,763 in · £45,368 out)
- £300 a day (£43,525 in · £48,445 out)
- £325 a day (£46,286 in · £51,043 out)
- £350 a day (£49,048 in · £53,640 out)
- £375 a day (£51,810 in · £56,237 out)
- £400 a day (£54,572 in · £58,834 out)
- £425 a day (£57,334 in · £61,432 out)
- £450 a day (£60,096 in · £64,029 out)
- £475 a day (£62,858 in · £66,626 out)
- £500 a day (£65,620 in · £69,224 out)
- £525 a day (£68,382 in · £71,821 out)
- £550 a day (£70,252 in · £74,418 out)
- £575 a day (£72,061 in · £77,016 out)
- £600 a day (£73,871 in · £79,126 out)
- £625 a day (£75,680 in · £80,814 out)
- £650 a day (£77,490 in · £82,502 out)
- £675 a day (£79,769 in · £84,190 out)
- £700 a day (£82,292 in · £85,877 out)
- £725 a day (£84,816 in · £87,565 out)
- £750 a day (£87,340 in · £89,494 out)
- £775 a day (£89,864 in · £91,946 out)
- £800 a day (£92,388 in · £94,398 out)
- £825 a day (£94,912 in · £96,849 out)
- £850 a day (£97,435 in · £99,301 out)
- £875 a day (£99,959 in · £101,753 out)
- £900 a day (£102,483 in · £104,205 out)
- £925 a day (£105,007 in · £106,657 out)
- £950 a day (£107,531 in · £109,108 out)
- £975 a day (£110,054 in · £111,560 out)
- £1,000 a day (£112,578 in · £114,012 out)
- £1,100 a day (£122,673 in · £123,819 out)
- £1,200 a day (£132,769 in · £133,626 out)
- £1,250 a day (£137,816 in · £138,619 out)
- £1,500 a day (£163,054 in · £163,637 out)
Common questions
How is inside IR35 take-home worked out?
The umbrella company receives your day rate, takes its fee, 15% employer National Insurance on pay above £5,000 and the 0.5% Apprenticeship Levy, then pays you the rest as a salary. Income Tax and employee National Insurance come off that salary as for any employee.
How is outside IR35 take-home worked out?
Your limited company pays you a £12,570 salary, which uses your Personal Allowance. It pays Corporation Tax on the profit at 19% up to £50,000, with marginal relief up to £250,000, and pays the rest to you as dividends. Dividends above the £500 allowance are taxed at 10.75%, 35.75% or 39.35%.
Who decides if a contract is inside IR35?
Public sector clients and medium or large private sector clients decide and must give you a status determination statement. For a small private sector client, your own company decides.
Sources and assumptions
- 220 billable days, an umbrella fee of £25 a week and £1,500 a year of company running costs.
- No pension, student loan or other income. Outside IR35 assumes a single-director company paying all profit as dividends.
- Tax on dividends
- Corporation Tax rates and reliefs
- Rates and thresholds for employers 2026 to 2027
- Understanding off-payroll working (IR35)
- Employment Allowance: check if you're eligible
These are estimates. Your own figures depend on your umbrella, your accountant's advice, expenses and any other income.