£250 Day Rate After Tax UK (2026/27) — Inside vs Outside IR35
A £250/day UK contractor rate over 220 billable days generates £55,000 in annual contract revenue. Operating Outside IR35 via a Limited Company yields £41,872/year (£3,489.33/month) compared with £37,781/year (£3,148.40/month) Inside IR35 via an Umbrella company—a difference of £4,091/year.
| £250/Day IR35 Metric (220 Days) | Inside IR35 (Umbrella) | Outside IR35 (Limited Company) |
|---|---|---|
| Gross Annual Contract Value | £55,000 | £55,000 |
| Employer NI (13.8%) & Levy | £6,115 | £1,045 (on £12,570 salary) |
| Corporation Tax (19%–25%) | £0 (Taxed via PAYE) | £7,521 |
| Personal Income / Dividend Tax & NI | £9,804 | £2,762 |
| Net Annual Take-Home Pay | £37,781/yr | £41,872/yr |
| Net Monthly Take-Home Pay | £3,148.40/mo | £3,489.33/mo |