Answers · UK 2025/26

What is my take-home on a £750 day rate inside IR35 in 2026/27?

On a £750 day rate inside IR35 working about 220 days a year, your gross assignment income is roughly £165,000. After employer National Insurance and the Apprenticeship Levy are deducted from the rate, net take-home is typically around £85,000 to £87,000 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 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 £750 day rate over roughly 220 working days gives gross assignment income of about £165,000. 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deemed salary to roughly £139,000 to £141,000, which is above the £125,140 point where the Personal Allowance is fully withdrawn and part of the income falls into the 45% additional rate. On that deemed salary you then pay Income Tax at up to 45% plus employee National Insurance at 8% and 2%, leaving net take-home of broadly £85,000 to £87,000 a year, though the exact figure depends on the fee payer's cost structure and any pension contributions. At this level, many contractors carefully compare inside-IR35 PAYE income against operating outside IR35 through their own limited company, since the combination of Corporation Tax and dividend tax on retained profit can sometimes produce a materially higher net return than PAYE at the 45% additional rate. Use the contractor take-home calculator to model your specific circumstances.