Answers · UK 2025/26

What is my take-home on a £950 day rate inside IR35 in 2026/27?

On a £950 day rate inside IR35 working about 220 days a year, your gross fees are roughly £209,000. After employer National Insurance, the Apprenticeship Levy, employee tax and employee National Insurance are deducted through PAYE, your net take-home is around £102,700 to £113,400 a year, depending on pension contributions and the fee payer's exact deductions.

Last updated: 10 July 2026Last reviewed: 10 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 accounts for employer National Insurance and the Apprenticeship Levy. A £950 day rate over roughly 220 working days gives gross fees of about £209,000. From this the employer National Insurance at 15% and the 0.5% Apprenticeship Levy are usually taken out of the assignment rate first, reducing the amount treated as your deemed salary to roughly £181,600. On that deemed salary you then pay Income Tax of about £67,900 (the deemed salary sits well within the £100,000-£125,140 Personal Allowance taper zone, pushing the effective marginal rate on part of the income to 60%) and employee National Insurance of about £5,640. The result is net take-home of broadly £102,700 to £113,400 a year, although the exact figure depends on whether employer costs are deducted from your rate before or after any umbrella margin, and on pension contributions. At this level, sacrificing part of the deemed salary into a pension can be very effective at reducing the impact of the Personal Allowance taper as well as cutting Income Tax and National Insurance directly. Use the contractor take-home or take-home pay calculator to model your day rate, days worked and pension.