A £400/day contractor outside IR35 takes home approx £65,000/year via Ltd Co vs ~£59,000 inside IR35 (PAYE, 5% pension). Dividend tax rises to 10.75% from April 2026.
IR35 status, day-rate take-home, and contractor tax planning. Updated for the April 2026 dividend tax increase to 10.75% and the 15% employer NI rate.
Annualised at 220 working days with 5% pension. Click any rate for a full breakdown with pension and student loan adjustments.