Answers · UK 2025/26

What is my take-home on a £600 day rate inside IR35 in 2026/27?

On a £600 day rate inside IR35 working about 220 days a year, your gross assignment income is roughly £132,000. After employer National Insurance and the Apprenticeship Levy are deducted from the rate, net take-home is typically around £72,000 to £74,000 a year.

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

Full answer

Inside IR35 means HMRC treats you as an employee for tax, so the fee payer 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 £600 day rate over roughly 220 working days gives gross assignment income of about £132,000. 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 £111,000 to £113,000 -- a level at which the Personal Allowance also begins to taper because it exceeds £100,000. On that deemed salary you then pay Income Tax at 20% and 40%, plus employee National Insurance at 8% and 2%, leaving net take-home of broadly £72,000 to £74,000 a year, though the exact figure depends on the fee payer's cost structure and any pension contributions. Because the deemed salary sits inside the £100,000-£125,140 Personal Allowance taper band, making an employer pension contribution here is unusually valuable, as it both reduces Income Tax and National Insurance and helps restore the lost Personal Allowance. Compared with the same rate outside IR35 through your own limited company, inside-IR35 take-home at this level can be several thousand pounds lower once the dividend tax advantage and more flexible profit retention are factored in. Use the contractor take-home calculator to model your exact position.