£350 Per Day: Take-Home Pay Breakdown (2026/27)

Q: How much do I take home on £350 per day as a limited company?

At £350 per day (£77,000 pa, 220 days), a limited company director outside IR35 takes home approximately £55,971 in 2026/27 — an effective tax rate of 27.3%. This assumes a £12,570 salary with remaining profits paid as dividends.

Q: What is the difference between PAYE and a limited company at £350 per day?

On £350 per day, PAYE takes home £55,217 versus £54,348 for a limited company (outside IR35) — a difference of £869 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 £350 per day generates £77,000 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	£77,000	£8,493	£0	£13,023	£54,348	27.9%
PAYE Employee / Umbrella	£77,000	£18,232	£3,551	—	£55,217	28.3%
Limited Company Inside IR35	£77,000	£13,136	£3,296	—	£47,829	32.9%
Sole Trader Most efficient	£77,000	£18,232	£2,797	—	£55,971	27.3%

Based on 220 working days (£77,000 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 £350 per day?

Is £350 per day a good rate?

£350 a day is squarely in mid-level territory for developers and analysts. It reflects a contractor who can be productive from day one without close supervision. Frontend and junior full-stack developers, along with business analysts early in their contracting careers, frequently sit at this rate.

Worked example

A business analyst billing £350 a day on a typical 220-day year grosses a comfortable five-figure income. Whether you keep more of it as a limited company or via an umbrella depends heavily on your IR35 status — the comparison below makes the trade-off concrete.

Over 220 working days, £350 per day comes to £77,000 in gross fees. As a limited company outside IR35 that leaves roughly £54,348 in your pocket after Corporation Tax, dividend tax and National Insurance — an effective tax rate of around 27.9%. The same fees taken through an umbrella under PAYE would return about £55,217, while inside IR35 the figure falls to approximately £47,829. 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)

£77,000

£350/day × 220 days

Salary drawn

£12,570

At personal allowance

Dividends

£50,271

After corporation tax

Corporation tax

£13,023

On £63,295 profit

Dividend tax

£8,493

Personal tax on dividends

Take-home pay

£54,348

Per year after all taxes

Frequently Asked Questions

How much do I take home on £350 per day as a limited company?

At £350 per day (£77,000 annual gross over 220 working days), a limited company director outside IR35 takes home approximately £55,971 in 2026/27. This assumes a £12,570 salary with remaining profits extracted as dividends, giving an effective tax rate of around 27.3%.

What is the difference between PAYE and a limited company at £350 per day?

On £350/day, PAYE takes home £55,217 versus £54,348 for a limited company (outside IR35) — a difference of £869 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 £350 per day?

Yes, significantly. Inside IR35 at £350/day, you take home approximately £47,829 — around £6,519 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 £350 per day?

£350 a day is typically commanded by mid-level contractors with solid commercial delivery experience, such as mid-level software developer, business analyst, project coordinator and frontend developer. It is most common in software houses, financial services support, e-commerce and consultancies. £350 a day is squarely in mid-level territory for developers and analysts. It reflects a contractor who can be productive from day one without close supervision. Frontend and junior full-stack developers, along with business analysts early in their contracting careers, frequently sit at this rate.