£600 Day Rate After Tax UK (2026/27) — Inside vs Outside IR35
A £600/day UK contractor rate over 220 billable days generates £132,000 in annual contract revenue. Operating Outside IR35 via a Limited Company yields £81,418/year (£6,784.83/month) compared with £74,239/year (£6,186.60/month) Inside IR35 via an Umbrella company—a difference of £7,179/year.
| £600/Day IR35 Metric (220 Days) | Inside IR35 (Umbrella) | Outside IR35 (Limited Company) |
|---|---|---|
| Gross Annual Contract Value | £132,000 | £132,000 |
| Employer NI (13.8%) & Levy | £15,748 | £1,045 (on £12,570 salary) |
| Corporation Tax (19%–25%) | £0 (Taxed via PAYE) | £27,145 |
| Personal Income / Dividend Tax & NI | £40,713 | £20,592 |
| Net Annual Take-Home Pay | £74,239/yr | £81,418/yr |
| Net Monthly Take-Home Pay | £6,186.60/mo | £6,784.83/mo |