£700 Day Rate After Tax UK (2026/27) — Inside vs Outside IR35
A £700/day UK contractor rate over 220 billable days generates £154,000 in annual contract revenue. Operating Outside IR35 via a Limited Company yields £92,131/year (£7,677.58/month) compared with £82,283/year (£6,856.95/month) Inside IR35 via an Umbrella company—a difference of £9,848/year.
| £700/Day IR35 Metric (220 Days) | Inside IR35 (Umbrella) | Outside IR35 (Limited Company) |
|---|---|---|
| Gross Annual Contract Value | £154,000 | £154,000 |
| Employer NI (13.8%) & Levy | £18,501 | £1,045 (on £12,570 salary) |
| Corporation Tax (19%–25%) | £0 (Taxed via PAYE) | £32,975 |
| Personal Income / Dividend Tax & NI | £51,916 | £26,050 |
| Net Annual Take-Home Pay | £82,283/yr | £92,131/yr |
| Net Monthly Take-Home Pay | £6,856.95/mo | £7,677.58/mo |