Answers · UK 2025/26

What is my take-home on a £350 day rate inside IR35 in 2026/27?

On a £350 day rate inside IR35 working about 220 days a year, your gross assignment income is roughly £77,000. After employer National Insurance and the Apprenticeship Levy are deducted from the rate, and Income Tax and employee National Insurance are then applied through PAYE, net take-home is typically around £48,000 to £49,000 a year.

Last updated: 3 July 2026Last reviewed: 3 July 2026How we verify

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Inside IR35 means HMRC treats you as an employee for tax, so the fee payer (the agency or end client) deducts Income Tax and employee National Insurance through PAYE before paying you, and also funds employer National Insurance and the Apprenticeship Levy from the assignment rate. A £350 day rate over roughly 220 working days gives gross assignment income of about £77,000. From this, employer National Insurance at 15% on earnings above £5,000 and the 0.5% levy are typically deducted first, reducing the amount treated as your deemed salary to roughly £65,000 to £66,000. On that deemed salary you then pay Income Tax (20% basic rate, with a small slice at 40% higher rate) and employee National Insurance at 8%, leaving net take-home of broadly £48,000 to £49,000 a year, though the exact figure depends on the fee payer's cost structure and any pension contributions. Making employer pension contributions through the deemed payment is highly tax-efficient inside IR35 because it reduces both Income Tax and National Insurance before they are calculated. Compared with the same rate outside IR35 through your own limited company using salary and dividends, inside-IR35 take-home is usually a few thousand pounds lower because the dividend tax advantage is lost. Use the contractor take-home or take-home pay calculator to model your day rate, days worked and pension.