£350 a day after tax
At £350 a day for 220 days a year, a UK contractor takes home about £3,931 a month through an umbrella company or £4,529 a month through a limited company in 2026/27; a limited company leaves more.
Umbrella company
For work inside IR35, paid through PAYE
£47,175 a year
£3,931 a month, plus £3,522 into your pension
Like a permanent salary of £63,133
Your own limited company More take-home
For work outside IR35, salary plus dividends
£54,348 a year
£4,529 a month
Like a permanent salary of £75,501
On £77,000 of fees (£350 a day for 220 days), a limited company leaves £7,174 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 | £77,000 |
|---|---|
| Umbrella margin (£20 a week × 44 weeks) | −£880 |
| Employer National Insurance (15% above £5,000) | −£9,062 |
| Apprenticeship Levy (0.5%) | −£327 |
| Employer pension (3% of qualifying earnings) | −£1,321 |
| Your gross pay, including holiday pay | £65,410 |
| Income tax | −£12,716 |
| National Insurance | −£3,319 |
| Your pension contribution (5%, before tax) | −£2,202 |
| Take-home pay | £47,175 |
Limited company, step by step
| Fees invoiced (excluding VAT) | £77,000 |
|---|---|
| Director salary | −£12,570 |
| Employer National Insurance on the salary | −£1,136 |
| Company profit | £63,295 |
| Corporation Tax (20.6% effective) | −£13,023 |
| Paid out as dividends | £50,271 |
| Your salary | £12,570 |
| Your dividends | £50,271 |
| Dividend allowance on £500 | £0 |
| Ordinary rate (10.75%) on £37,200 | −£3,999 |
| Upper rate (35.75%) on £12,571 | −£4,494 |
| Take-home pay | £54,348 |
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 (£10,800) itself. On the full £77,000 you would keep £55,217, 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 | £70,000 | £43,700 | £51,043 |
| 220 | £77,000 | £47,175 | £54,348 |
| 230 | £80,500 | £48,912 | £56,001 |
| 240 | £84,000 | £50,650 | £57,654 |
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 £350 a day after tax?
Working 220 days a year (£77,000 of fees) in 2026/27, you take home about £47,175 a year (£3,931 a month) through an umbrella company, plus £3,522 into your pension, or £54,348 (£4,529 a month) through your own limited company outside IR35.
What permanent salary is £350 a day worth?
For the same take-home pay as a permanent employee you would need about £63,133 a year compared with the umbrella route, or £75,501 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 £350 a day for 220 days, the umbrella route leaves £45,360 and a limited company £54,348 in Scotland.
Other day rates
How the calculation works and every assumption: UK contractor calculator.