£200 Day Rate After Tax UK (2026/27) — Inside vs Outside IR35
A £200/day UK contractor rate over 220 billable days generates £44,000 in annual contract revenue. Operating Outside IR35 via a Limited Company yields £33,742/year (£2,811.83/month) compared with £30,852/year (£2,571.02/month) Inside IR35 via an Umbrella company—a difference of £2,890/year.
| £200/Day IR35 Metric (220 Days) | Inside IR35 (Umbrella) | Outside IR35 (Limited Company) |
|---|---|---|
| Gross Annual Contract Value | £44,000 | £44,000 |
| Employer NI (13.8%) & Levy | £4,739 | £1,045 (on £12,570 salary) |
| Corporation Tax (19%–25%) | £0 (Taxed via PAYE) | £5,431 |
| Personal Income / Dividend Tax & NI | £7,109 | £1,982 |
| Net Annual Take-Home Pay | £30,852/yr | £33,742/yr |
| Net Monthly Take-Home Pay | £2,571.02/mo | £2,811.83/mo |