UK tax year 2026/27

£1,000/day contractor take-home, four engagement types

Same £1,000 / day. Different tax structures. See what you'd actually keep under UK PAYE, an umbrella (Inside IR35), a limited company inside IR35, and a limited company outside IR35 — all four figures computed live for 2026/27.

See the difference

Same £1,000.00/day contractor. Four engagement types.

Assumes 5 days a week × 46 billable weeks, tax code 1257L, no student loans, UK 2026/27 tax year — all figures are live from the same engines that power the calculators.

  1. Highest net

    Standard PAYE employment

    PAYE

    Annual take-home

    £133,686.40

    £11,140.53 / month

    Effective tax rate
    41.9%
    vs. Standard PAYE
    Baseline

    As if you were on payroll with the same annualised salary.

  2. Lowest net

    Umbrella company

    Inside IR35

    Annual take-home

    £117,143.98

    £9,762.00 / month

    Effective tax rate
    49.1%
    vs. Standard PAYE
    −£16,542.42 vs PAYE

    Includes £25/week margin, employer NI, apprenticeship levy — modelled like a real payslip.

  3. Limited (Inside IR35)

    Inside IR35

    Annual take-home

    £133,686.40

    £11,140.53 / month

    Effective tax rate
    41.9%
    vs. Standard PAYE
    Baseline

    PAYE-style deemed employment via the fee-payer.

  4. Limited (Outside IR35)

    Outside IR35

    Annual take-home

    £120,844.83

    £10,070.40 / month

    Effective tax rate
    47.5%
    vs. Standard PAYE
    −£12,841.57 vs PAYE

    NI-optimal salary + dividends, with corporation-tax marginal relief.

Gap between the best and worst option: £16,542.42 / year on the same working assumptions.

Model your own rate →

What the numbers say for a £1,000/day contractor

Assuming 5 days per week × 46 billable weeks per year, a 1257L tax code, no student loans and no personal pension, the £1,000/day contractor scenarios above break down like this for 2026/27:

  • Standard PAYE: £133,686.40 net per year (effective tax rate 41.9%).
  • Umbrella (Inside IR35): £117,143.98 net per year — that's -£16,542.42 vs. PAYE, mostly because employer NI, apprenticeship levy and the umbrella's margin come off the assignment rate before you see it.
  • Limited (Inside IR35): £133,686.40 net per year — the fee-payer applies PAYE-style treatment, so the maths lands very close to standard PAYE.
  • Limited (Outside IR35): £120,844.83 net per year via an NI-optimal director's salary plus dividends, after corporation tax with marginal relief. That's -£12,841.57 vs. PAYE.

Gap between the best and worst option: £16,542.42 per year. Model your own tax code, student loans, weeks worked and pension contributions in the full calculator to get a personalised number.

Other UK contractor rates