£300 Day Rate After Tax UK (2026/27) — Inside vs Outside IR35

A £300/day UK contractor rate over 220 billable days generates £66,000 in annual contract revenue. Operating Outside IR35 via a Limited Company yields £49,280/year (£4,106.67/month) compared with £43,739/year (£3,644.89/month) Inside IR35 via an Umbrella company—a difference of £5,541/year.

£300/Day IR35 Metric (220 Days) Inside IR35 (Umbrella) Outside IR35 (Limited Company)
Gross Annual Contract Value £66,000 £66,000
Employer NI (13.8%) & Levy £7,491 £1,045 (on £12,570 salary)
Corporation Tax (19%–25%) £0 (Taxed via PAYE) £9,655
Personal Income / Dividend Tax & NI £13,470 £4,220
Net Annual Take-Home Pay £43,739/yr £49,280/yr
Net Monthly Take-Home Pay £3,644.89/mo £4,106.67/mo

Frequently Asked Questions (2026/27 & 2027/28 UK Rules)

How much is a £300 contractor day rate after tax in the UK?

Over 220 billable days (£66,000 gross revenue), a £300 day rate yields £4,106.67 net per month (£49,280/year) Outside IR35 via a Limited Company, or £3,644.89 net per month (£43,739/year) Inside IR35 via an Umbrella company.

Why is my net pay lower Inside IR35 on £300 a day?

Inside IR35, 13.8% Employer National Insurance (£7,205) and the 0.5% Apprenticeship Levy (£286) are deducted from your assignment rate before PAYE Income Tax and Employee NI are calculated.

Authoritative UK Calculators & 2027/28 Early Access