£450/day Contractor Take-home UK 2026/27
At £450/day × 220 days (£99,000 turnover), outside IR35 you'd keep £66,734/year. Compare with Inside IR35 below.
Last updated · Tax year 2026/27
| Annual turnover | £99,000 |
|---|---|
| Director salary (PA £12,570) | £12,570 |
| Corporation Tax | −£19,154 |
| Dividend tax | −£13,112 |
| Take-home | £66,734 |
Take-home pay
£66,734
32.6% effective tax rate Income Tax plus employee National Insurance as a percentage of your gross salary. Excludes pension, student loan, and HICBC.
- Monthly
- £5,561
- Weekly
- £1,283
- Daily
- £257
- Hourly
- £34.22
Your salary in context
ONS · HMRC · CPI
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Annual turnover
At £450/day × 220 days, your annual turnover is £99,000.
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Outside IR35 take-home
You keep £66,734 a year (£5,561/month) — effective rate 32.6% of turnover.
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Inside vs Outside comparison
Inside IR35 on the same contract would give £67,977 — that's £1,243 less than your current option.
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Corporation Tax
After £12,570 director salary, profits of £86,430 pay £19,154 Corporation Tax (effective 22.2%). Distributable: £67,276.
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Take-home vs turnover
For every £100 of turnover you keep about £67 after all UK taxes.
Frequently asked questions
- What does inside / outside IR35 mean?
- Inside IR35 means HMRC treats your contract as disguised employment — you're taxed as a PAYE employee of the end client (or umbrella). Outside IR35 means you're genuinely self-employed and can operate through your own limited company.
- Is outside IR35 still worth it post-2024 NI cuts?
- Less so than before. With employee NI cut to 8%, Class 4 NI to 6%, and Corporation Tax up to 26.5% marginal, the gap has narrowed to a few thousand pounds at typical contractor rates. Still worth it at lower turnover (<£80k), closer to a wash at £100k+.
- How do you model outside IR35?
- We use the standard 'tax-efficient' structure: £12,570 director salary (uses full Personal Allowance, no Income Tax) + all remaining post-CT profits as dividends. Your £500 dividend allowance applies, then 8.75%/33.75%/39.35% dividend rates.
- What Corporation Tax rate do you apply?
- From April 2023: 19% on the first £50,000 of profit, effectively 26.5% on the marginal band £50,000–£250,000, and 25% above £250,000. 2023-24 used flat 19% for small profits before the reform took effect.
- Do you model IR35 pre-April-2021 rules?
- No — we assume the post-2021 off-payroll rules where IR35 status is determined by the end client (for medium/large businesses) or by you (for small-client engagements).