£400 Day Rate After Tax UK (2026/27) — Inside vs Outside IR35
A £400/day UK contractor rate over 220 billable days generates £88,000 in annual contract revenue. Operating Outside IR35 via a Limited Company yields £59,993/year (£4,999.42/month) compared with £54,902/year (£4,575.21/month) Inside IR35 via an Umbrella company—a difference of £5,091/year.
| £400/Day IR35 Metric (220 Days) | Inside IR35 (Umbrella) | Outside IR35 (Limited Company) |
|---|---|---|
| Gross Annual Contract Value | £88,000 | £88,000 |
| Employer NI (13.8%) & Levy | £10,243 | £1,045 (on £12,570 salary) |
| Corporation Tax (19%–25%) | £0 (Taxed via PAYE) | £15,485 |
| Personal Income / Dividend Tax & NI | £21,555 | £9,678 |
| Net Annual Take-Home Pay | £54,902/yr | £59,993/yr |
| Net Monthly Take-Home Pay | £4,575.21/mo | £4,999.42/mo |