£70/hour contractor take-home, four engagement types
Same £70 / hour. 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 £525.00/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.
- Highest net
Standard PAYE employment
PAYEAnnual take-home
£76,442.40
£6,370.20 / month
- Effective tax rate
- 36.7%
- vs. Standard PAYE
- Baseline
As if you were on payroll with the same annualised salary.
- Lowest net
Umbrella company
Inside IR35Annual take-home
£70,153.30
£5,846.11 / month
- Effective tax rate
- 41.9%
- vs. Standard PAYE
- −£6,289.10 vs PAYE
Includes £25/week margin, employer NI, apprenticeship levy — modelled like a real payslip.
Limited (Inside IR35)
Inside IR35Annual take-home
£76,442.40
£6,370.20 / month
- Effective tax rate
- 36.7%
- vs. Standard PAYE
- Baseline
PAYE-style deemed employment via the fee-payer.
Limited (Outside IR35)
Outside IR35Annual take-home
£76,062.78
£6,338.57 / month
- Effective tax rate
- 37.0%
- vs. Standard PAYE
- −£379.62 vs PAYE
NI-optimal salary + dividends, with corporation-tax marginal relief.
Gap between the best and worst option: £6,289.10 / year on the same working assumptions.
Model your own rate →What the numbers say for a £70/hour contractor
Assuming 7.5 hours per day × 5 days per week × 46 weeks, a 1257L tax code, no student loans and no personal pension, the £70/hour contractor scenarios above break down like this for 2026/27:
- Standard PAYE: £76,442.40 net per year (effective tax rate 36.7%).
- Umbrella (Inside IR35): £70,153.30 net per year — that's -£6,289.10 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): £76,442.40 net per year — the fee-payer applies PAYE-style treatment, so the maths lands very close to standard PAYE.
- Limited (Outside IR35): £76,062.78 net per year via an NI-optimal director's salary plus dividends, after corporation tax with marginal relief. That's -£379.62 vs. PAYE.
Gap between the best and worst option: £6,289.10 per year. Model your own tax code, student loans, weeks worked and pension contributions in the full calculator to get a personalised number.