£450 a day after tax
At £450 a day for 220 days a year, a UK contractor takes home about £4,852 a month through an umbrella company or £5,395 a month through a limited company in 2026/27; a limited company leaves more.
Umbrella company
For work inside IR35, paid through PAYE
£58,222 a year
£4,852 a month, plus £3,522 into your pension
Like a permanent salary of £82,181
Your own limited company More take-home
For work outside IR35, salary plus dividends
£64,737 a year
£5,395 a month
Like a permanent salary of £93,414
On £99,000 of fees (£450 a day for 220 days), a limited company leaves £6,515 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 | £99,000 |
|---|---|
| Umbrella margin (£20 a week × 44 weeks) | −£880 |
| Employer National Insurance (15% above £5,000) | −£11,919 |
| Apprenticeship Levy (0.5%) | −£422 |
| Employer pension (3% of qualifying earnings) | −£1,321 |
| Your gross pay, including holiday pay | £84,458 |
| Income tax | −£20,335 |
| National Insurance | −£3,700 |
| Your pension contribution (5%, before tax) | −£2,202 |
| Take-home pay | £58,222 |
Limited company, step by step
| Fees invoiced (excluding VAT) | £99,000 |
|---|---|
| Director salary | −£12,570 |
| Employer National Insurance on the salary | −£1,136 |
| Company profit | £85,295 |
| Corporation Tax (22.1% effective) | −£18,853 |
| Paid out as dividends | £66,441 |
| Your salary | £12,570 |
| Your dividends | £66,441 |
| Dividend allowance on £500 | £0 |
| Ordinary rate (10.75%) on £37,200 | −£3,999 |
| Upper rate (35.75%) on £28,741 | −£10,275 |
| Take-home pay | £64,737 |
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 (£14,100) itself. On the full £99,000 you would keep £67,977, 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 | £90,000 | £53,743 | £60,487 |
| 220 | £99,000 | £58,222 | £64,737 |
| 230 | £103,500 | £60,462 | £66,862 |
| 240 | £108,000 | £62,702 | £68,988 |
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 £450 a day after tax?
Working 220 days a year (£99,000 of fees) in 2026/27, you take home about £58,222 a year (£4,852 a month) through an umbrella company, plus £3,522 into your pension, or £64,737 (£5,395 a month) through your own limited company outside IR35.
What permanent salary is £450 a day worth?
For the same take-home pay as a permanent employee you would need about £82,181 a year compared with the umbrella route, or £93,414 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 £450 a day for 220 days, the umbrella route leaves £55,809 and a limited company £64,737 in Scotland.
Other day rates
How the calculation works and every assumption: UK contractor calculator.