£875 a day: take-home inside and outside IR35 (2026/27)

On £875 a day for 220 days (£192,500 a year) a contractor in England keeps about £99,867 inside IR35 through an umbrella company and £102,422 outside IR35 through their own limited company. That is £2,554 a year more outside IR35.

Where the money goes at £875 a day

220 daysInsideOutside
Contract income£192,500£192,500
Umbrella margin£1,300£0
Employer NI and levy£25,010£1,136
Corporation tax£0£43,631
Income Tax and employee NI£66,323£2,514
Dividend tax£0£42,798
Take-home£99,867£102,422
Per month£8,322£8,535
Share of income52%53%

Inside IR35 the umbrella pays 15% employer NI above £5,000 and the 0.5% apprenticeship levy from the assignment rate, then runs PAYE on gross pay of £166,190. Outside IR35 the company pays you a £12,570 salary and the rest as dividends after corporation tax. In Scotland the figures are £93,450 inside and £102,461 outside.

By days worked

Days a yearInsideOutside
180£83,807£87,411
200£91,837£94,621
220£99,867£102,422
230£103,883£106,322

Assumptions: umbrella margin of £25 a week, no business expenses, no pension contributions, no student loan and no other income. Change any of them in the IR35 calculator.

Other day rates

Frequently asked questions

How much do I take home on £875 a day inside IR35?

About £99,867 a year, or £8,322 a month, for 220 days through an umbrella company in England.

And outside IR35?

About £102,422 a year through your own limited company with a £12,570 salary and dividends, before accountancy and other company costs.

Who decides whether I am inside IR35?

A medium or large client decides and should give you a status determination statement. For a small private client, your own company decides.

Calculated with 2026/27 rates: employer NI 15% above £5,000, apprenticeship levy 0.5%, Income Tax and NI bands, corporation tax 19% to 25% with marginal relief, dividend tax 10.75% and 35.75%. Updated 2026-11-04. General information, not tax advice.