Contractor Calculator
£300 Per Day: Take-Home Pay Breakdown (2026/27)
Contracting at £300 per day generates £66,000 per year (220 days). Here's how much you take home in 2026/27 under each working arrangement.
| Structure | Gross | Income Tax | Take-Home |
|---|---|---|---|
| Limited Company Outside IR35 | £66,000 | £5,603 | £49,154 |
| PAYE Employee / Umbrella | £66,000 | £13,832 | £48,837 |
| Limited Company Inside IR35 | £66,000 | £9,502 | £42,558 |
| Sole Trader Most efficient | £66,000 | £13,832 | £49,591 |
Based on 220 working days (£66,000 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 £300 per day?
£300 a day is typically commanded by early-career contractors with a few years of commercial experience, such as QA / test engineer, mid-level IT support, junior business analyst and experienced bookkeeper or accounts contractor. It is most common in software testing, finance back-office, public sector and professional services.
Is £300 per day a good rate?
£300 a day marks the point where technical contractors with a proven skill set become viable. QA testers, support specialists, and junior analysts commonly bill at this level. It is also a common public-sector rate, where contracts are frequently assessed as inside IR35 — worth modelling carefully before you accept.
Worked example
A QA engineer on £300 a day across a year of fairly continuous contracts will see a noticeable gap between an inside-IR35 umbrella arrangement and an outside-IR35 limited company. The figures below quantify that gap so you can see whether chasing outside-IR35 work is worth it at this rate.
Over 220 working days, £300 per day comes to £66,000 in gross fees. As a limited company outside IR35 that leaves roughly £49,154 in your pocket after Corporation Tax, dividend tax and National Insurance — an effective tax rate of around 23.8%. The same fees taken through an umbrella under PAYE would return about £48,837, while inside IR35 the figure falls to approximately £42,558. 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)
£66,000
£300/day × 220 days
Salary drawn
£12,570
At personal allowance
Dividends
£42,186
After corporation tax
Corporation tax
£10,108
On £52,295 profit
Dividend tax
£5,603
Personal tax on dividends
Take-home pay
£49,154
Per year after all taxes
Frequently Asked Questions
How much do I take home on £300 per day as a limited company?
At £300 per day (£66,000 annual gross over 220 working days), a limited company director outside IR35 takes home approximately £49,591 in 2026/27. This assumes a £12,570 salary with remaining profits extracted as dividends, giving an effective tax rate of around 24.9%.
What is the difference between PAYE and a limited company at £300 per day?
On £300/day, a limited company (outside IR35) takes home £49,154 versus £48,837 under PAYE — a difference of £316 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 £300 per day?
Yes, significantly. Inside IR35 at £300/day, you take home approximately £42,558 — around £6,595 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 £300 per day?
£300 a day is typically commanded by early-career contractors with a few years of commercial experience, such as QA / test engineer, mid-level IT support, junior business analyst and experienced bookkeeper or accounts contractor. It is most common in software testing, finance back-office, public sector and professional services. £300 a day marks the point where technical contractors with a proven skill set become viable. QA testers, support specialists, and junior analysts commonly bill at this level. It is also a common public-sector rate, where contracts are frequently assessed as inside IR35 — worth modelling carefully before you accept.
See also
These calculations are estimates based on current published tax rates. They do not constitute financial, tax, or legal advice. Always consult a qualified accountant for your specific situation.
Tax rates sourced from HMRC published rates for the 2026/27 tax year. Last verified: March 2026.
Rates based on HMRC published tax rates for 2026/27.