£1200 Per Day: Take-Home Pay Breakdown (2026/27)

Q: How much do I take home on £1200 per day as a limited company?

At £1200 per day (£264,000 pa, 220 days), a limited company director outside IR35 takes home approximately £151,832 in 2026/27 — an effective tax rate of 42.5%. This assumes a £12,570 salary with remaining profits paid as dividends.

Q: What is the difference between PAYE and a limited company at £1200 per day?

On £1200 per day, PAYE takes home £151,078 versus £139,954 for a limited company (outside IR35) — a difference of £11,124 per year. At this income level, the combined burden of Corporation Tax and dividend tax exceeds PAYE income tax and NI, making PAYE more efficient. The April 2026 dividend tax increase contributed to this crossover.

Contracting at £1200 per day generates £264,000 per year (220 days). Here's how much you take home in 2026/27 under each working arrangement.

Structure	Gross	Income Tax	NI	Corp Tax	Take-Home	Eff. Rate
Limited Company Outside IR35	£264,000	£60,337	£0	£62,574	£139,954	46.6%
PAYE Employee / Umbrella	£264,000	£105,632	£7,291	—	£151,078	42.8%
Limited Company Inside IR35	£264,000	£85,264	£6,385	—	£127,090	46.9%
Sole Trader Most efficient	£264,000	£105,632	£6,537	—	£151,832	42.5%

Based on 220 working days (£264,000 annual gross). Ltd company uses £12,570 salary. 2026/27 HMRC rates. Rest-of-UK (non-Scottish) taxpayer. No pension contributions.

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Who earns £1200 per day?

Is £1200 per day a good rate?

£1,200 a day reflects interim C-suite leadership and the very top tier of specialist consulting. Contracts are rare, bespoke, and won on reputation. An interim CTO brought in to lead a turnaround, or a niche expert engaged for a critical regulatory programme, are typical examples at this rate.

Worked example

An interim CTO on £1,200 a day generates around £264,000 over a standard year. At this income, take-home is dominated by additional-rate tax whichever structure you use — the breakdown below shows the limited-company and umbrella positions side by side so you can see how narrow the gap becomes.

Over 220 working days, £1200 per day comes to £264,000 in gross fees. As a limited company outside IR35 that leaves roughly £139,954 in your pocket after Corporation Tax, dividend tax and National Insurance — an effective tax rate of around 46.6%. The same fees taken through an umbrella under PAYE would return about £151,078, while inside IR35 the figure falls to approximately £127,090. Your own result depends on your IR35 status, pension contributions and how many days you actually bill.

Limited Company (Outside IR35) — Detailed Breakdown

Annual fees (gross)

£264,000

£1200/day × 220 days

Salary drawn

£12,570

At personal allowance

Dividends

£187,721

After corporation tax

Corporation tax

£62,574

On £250,295 profit

Dividend tax

£60,337

Personal tax on dividends

Take-home pay

£139,954

Per year after all taxes

Frequently Asked Questions

How much do I take home on £1200 per day as a limited company?

At £1200 per day (£264,000 annual gross over 220 working days), a limited company director outside IR35 takes home approximately £151,832 in 2026/27. This assumes a £12,570 salary with remaining profits extracted as dividends, giving an effective tax rate of around 42.5%.

What is the difference between PAYE and a limited company at £1200 per day?

On £1200/day, PAYE takes home £151,078 versus £139,954 for a limited company (outside IR35) — a difference of £11,124 per year. At this income level, the combined burden of Corporation Tax and dividend tax exceeds PAYE income tax and NI, making PAYE the more tax-efficient structure. The April 2026 dividend tax increase contributed to this crossover.

Does IR35 affect my take-home pay at £1200 per day?

Yes, significantly. Inside IR35 at £1200/day, you take home approximately £127,090 — around £12,864 less than outside IR35. Inside IR35, your income is treated as deemed employment: employer NI is deducted first, then you pay income tax and employee NI on the remainder, with only a 5% flat expense allowance.

How many working days are used in this calculation?

This breakdown uses 220 working days per year, which is a common assumption for UK contractors (approximately 260 weekdays minus bank holidays and leave). Your actual earnings will vary based on how many days you work. You can adjust the figure using the interactive calculator.

Who typically charges £1200 per day?

£1200 a day is typically commanded by interim c-suite and top-tier specialist consultants, such as interim CTO / CIO, transformation director, top-tier management consultant and specialist niche expert. It is most common in executive technology leadership, major transformation programmes, top-tier consultancy and financial services. £1,200 a day reflects interim C-suite leadership and the very top tier of specialist consulting. Contracts are rare, bespoke, and won on reputation. An interim CTO brought in to lead a turnaround, or a niche expert engaged for a critical regulatory programme, are typical examples at this rate.