£300 a day after tax
At £300 a day for 220 days a year, a UK contractor takes home about £3,471 a month through an umbrella company or £4,096 a month through a limited company in 2026/27; a limited company leaves more.
Umbrella company
For work inside IR35, paid through PAYE
£41,651 a year
£3,471 a month, plus £3,522 into your pension
Like a permanent salary of £53,609
Your own limited company More take-home
For work outside IR35, salary plus dividends
£49,154 a year
£4,096 a month
Like a permanent salary of £66,545
On £66,000 of fees (£300 a day for 220 days), a limited company leaves £7,503 a year more. "Like a permanent salary" is the employee salary with the same take-home pay.
Umbrella company, step by step
| Fees from the agency | £66,000 |
|---|---|
| Umbrella margin (£20 a week × 44 weeks) | −£880 |
| Employer National Insurance (15% above £5,000) | −£7,633 |
| Apprenticeship Levy (0.5%) | −£279 |
| Employer pension (3% of qualifying earnings) | −£1,321 |
| Your gross pay, including holiday pay | £55,887 |
| Income tax | −£8,906 |
| National Insurance | −£3,128 |
| Your pension contribution (5%, before tax) | −£2,202 |
| Take-home pay | £41,651 |
Limited company, step by step
| Fees invoiced (excluding VAT) | £66,000 |
|---|---|
| Director salary | −£12,570 |
| Employer National Insurance on the salary | −£1,136 |
| Company profit | £52,295 |
| Corporation Tax (19.3% effective) | −£10,108 |
| Paid out as dividends | £42,186 |
| Your salary | £12,570 |
| Your dividends | £42,186 |
| Dividend allowance on £500 | £0 |
| Ordinary rate (10.75%) on £37,200 | −£3,999 |
| Upper rate (35.75%) on £4,486 | −£1,604 |
| Take-home pay | £49,154 |
Inside IR35 through your own company, the agency or client deducts income tax and National Insurance as if you were an employee and pays employer National Insurance (£9,150) itself. On the full £66,000 you would keep £48,837, but inside-IR35 rates are usually lower than outside-IR35 rates, so compare the rate you are actually offered.
Fees exclude VAT. See the assumptions behind both routes.
By days worked
| Days a year | Fees | Umbrella, a year | Limited company, a year |
|---|---|---|---|
| 200 | £60,000 | £38,336 | £46,091 |
| 220 | £66,000 | £41,651 | £49,154 |
| 230 | £69,000 | £43,137 | £50,570 |
| 240 | £72,000 | £44,624 | £51,987 |
England, Wales or Northern Ireland, 2026/27, £12,570 director salary, no business costs, umbrella margin £20 a week with the minimum workplace pension.
Frequently asked questions
How much is £300 a day after tax?
Working 220 days a year (£66,000 of fees) in 2026/27, you take home about £41,651 a year (£3,471 a month) through an umbrella company, plus £3,522 into your pension, or £49,154 (£4,096 a month) through your own limited company outside IR35.
What permanent salary is £300 a day worth?
For the same take-home pay as a permanent employee you would need about £53,609 a year compared with the umbrella route, or £66,545 compared with a limited company, before pension and benefits such as paid holiday and sick pay.
Is it different in Scotland?
Salary is taxed at Scottish rates, dividends at UK rates. At £300 a day for 220 days, the umbrella route leaves £40,027 and a limited company £49,154 in Scotland.
Other day rates
How the calculation works and every assumption: UK contractor calculator.