£250 Per Day: Take-Home Pay Breakdown (2026/27)

Q: How much do I take home on £250 per day as a limited company?

At £250 per day (£55,000 pa, 220 days), a limited company director outside IR35 takes home approximately £43,211 in 2026/27 — an effective tax rate of 21.4%. This assumes a £12,570 salary with remaining profits paid as dividends.

Q: What is the difference between PAYE and a limited company at £250 per day?

On £250 per day, a limited company (outside IR35) takes home £42,477 versus £42,457 under PAYE — a difference of £19 per year. The limited company structure is more efficient because profits above the salary are paid as dividends, which are taxed at lower rates than income.

Contracting at £250 per day generates £55,000 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	£55,000	£3,542	£0	£7,846	£42,477	20.7%
PAYE Employee / Umbrella	£55,000	£9,432	£3,111	—	£42,457	22.8%
Limited Company Inside IR35	£55,000	£6,703	£2,681	—	£36,702	28.3%
Sole Trader Most efficient	£55,000	£9,432	£2,357	—	£43,211	21.4%

Based on 220 working days (£55,000 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 £250 per day?

Is £250 per day a good rate?

£250 a day is a typical starting rate for junior developers and coordinators stepping into contracting. It is the lower end of the technical contract market, where you are building a track record. Graduate and first-role developers often land here before moving up quickly as they gain commercial experience.

Worked example

A junior developer charging £250 a day on a six-month agency contract is effectively trading a permanent junior salary for flexibility and a higher headline figure. The breakdown below shows why the headline rate alone is misleading — what matters is the take-home after tax and National Insurance under each structure.

Over 220 working days, £250 per day comes to £55,000 in gross fees. As a limited company outside IR35 that leaves roughly £42,477 in your pocket after Corporation Tax, dividend tax and National Insurance — an effective tax rate of around 20.7%. The same fees taken through an umbrella under PAYE would return about £42,457, while inside IR35 the figure falls to approximately £36,702. 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)

£55,000

£250/day × 220 days

Salary drawn

£12,570

At personal allowance

Dividends

£33,449

After corporation tax

Corporation tax

£7,846

On £41,295 profit

Dividend tax

£3,542

Personal tax on dividends

Take-home pay

£42,477

Per year after all taxes

Frequently Asked Questions

How much do I take home on £250 per day as a limited company?

At £250 per day (£55,000 annual gross over 220 working days), a limited company director outside IR35 takes home approximately £43,211 in 2026/27. This assumes a £12,570 salary with remaining profits extracted as dividends, giving an effective tax rate of around 21.4%.

What is the difference between PAYE and a limited company at £250 per day?

On £250/day, a limited company (outside IR35) takes home £42,477 versus £42,457 under PAYE — a difference of £19 per year. The Ltd structure is more tax-efficient because profits above your salary are paid as dividends, which attract lower tax rates than employment income.

Does IR35 affect my take-home pay at £250 per day?

Yes, significantly. Inside IR35 at £250/day, you take home approximately £36,702 — around £5,774 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 £250 per day?

£250 a day is typically commanded by junior contractors with one to three years of experience, such as junior software developer, IT support engineer, marketing or content assistant and junior project coordinator. It is most common in agencies and SMEs, digital marketing, public sector support functions and startups. £250 a day is a typical starting rate for junior developers and coordinators stepping into contracting. It is the lower end of the technical contract market, where you are building a track record. Graduate and first-role developers often land here before moving up quickly as they gain commercial experience.