£900 a day after tax
At £900 a day for 220 days a year, a UK contractor takes home about £8,397 a month through an umbrella company or £8,739 a month through a limited company in 2026/27; a limited company leaves more.
Umbrella company
For work inside IR35, paid through PAYE
£100,767 a year
£8,397 a month, plus £3,522 into your pension
Like a permanent salary of £167,888
Your own limited company More take-home
For work outside IR35, salary plus dividends
£104,873 a year
£8,739 a month
Like a permanent salary of £175,636
On £198,000 of fees (£900 a day for 220 days), a limited company leaves £4,107 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 | £198,000 |
|---|---|
| Umbrella margin (£20 a week × 44 weeks) | −£880 |
| Employer National Insurance (15% above £5,000) | −£24,776 |
| Apprenticeship Levy (0.5%) | −£851 |
| Employer pension (3% of qualifying earnings) | −£1,321 |
| Your gross pay, including holiday pay | £170,172 |
| Income tax | −£61,790 |
| National Insurance | −£5,414 |
| Your pension contribution (5%, before tax) | −£2,202 |
| Take-home pay | £100,767 |
Limited company, step by step
| Fees invoiced (excluding VAT) | £198,000 |
|---|---|
| Director salary | −£12,570 |
| Employer National Insurance on the salary | −£1,136 |
| Company profit | £184,295 |
| Corporation Tax (24.5% effective) | −£45,088 |
| Paid out as dividends | £139,206 |
| Your salary | £12,570 |
| Income tax and NI on the salary | −£2,514 |
| Your dividends | £139,206 |
| Dividend allowance on £500 | £0 |
| Ordinary rate (10.75%) on £24,630 | −£2,648 |
| Upper rate (35.75%) on £87,440 | −£31,260 |
| Additional rate (39.35%) on £26,636 | −£10,481 |
| Take-home pay | £104,873 |
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 (£28,950) itself. On the full £198,000 you would keep £116,726, 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 | £180,000 | £92,544 | £96,849 |
| 220 | £198,000 | £100,767 | £104,873 |
| 230 | £207,000 | £104,878 | £108,885 |
| 240 | £216,000 | £108,990 | £112,897 |
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 £900 a day after tax?
Working 220 days a year (£198,000 of fees) in 2026/27, you take home about £100,767 a year (£8,397 a month) through an umbrella company, plus £3,522 into your pension, or £104,873 (£8,739 a month) through your own limited company outside IR35.
What permanent salary is £900 a day worth?
For the same take-home pay as a permanent employee you would need about £167,888 a year compared with the umbrella route, or £175,636 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 £900 a day for 220 days, the umbrella route leaves £94,296 and a limited company £104,913 in Scotland.
Other day rates
How the calculation works and every assumption: UK contractor calculator.