£900 Per Day: Take-Home Pay Breakdown (2026/27)

Q: How much do I take home on £900 per day as a limited company?

At £900 per day (£198,000 pa, 220 days), a limited company director outside IR35 takes home approximately £116,852 in 2026/27 — an effective tax rate of 41.0%. This assumes a £12,570 salary with remaining profits paid as dividends.

Q: What is the difference between PAYE and a limited company at £900 per day?

On £900 per day, PAYE takes home £116,098 versus £110,530 for a limited company (outside IR35) — a difference of £5,568 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 £900 per day generates £198,000 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	£198,000	£41,246	£0	£45,088	£110,530	43.6%
PAYE Employee / Umbrella	£198,000	£75,932	£5,971	—	£116,098	41.4%
Limited Company Inside IR35	£198,000	£60,729	£5,295	—	£98,193	45.4%
Sole Trader Most efficient	£198,000	£75,932	£5,217	—	£116,852	41.0%

Based on 220 working days (£198,000 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 £900 per day?

Is £900 per day a good rate?

£900 a day approaches the top of the open contract market. AI specialists, security architects, and interim engineering leaders command it. Demand for hands-on AI implementation experience — production LLMs, RAG systems, governance — has been the single biggest driver pushing contractors into this tier in 2026.

Worked example

An interim head of engineering on £900 a day generates close to £200,000 over a full year. At this income the personal allowance is long gone and additional-rate tax dominates — the breakdown below shows why high earners at this level lean heavily on pension contributions, which the interactive calculator can model.

Over 220 working days, £900 per day comes to £198,000 in gross fees. As a limited company outside IR35 that leaves roughly £110,530 in your pocket after Corporation Tax, dividend tax and National Insurance — an effective tax rate of around 43.6%. The same fees taken through an umbrella under PAYE would return about £116,098, while inside IR35 the figure falls to approximately £98,193. 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)

£198,000

£900/day × 220 days

Salary drawn

£12,570

At personal allowance

Dividends

£139,206

After corporation tax

Corporation tax

£45,088

On £184,295 profit

Dividend tax

£41,246

Personal tax on dividends

Take-home pay

£110,530

Per year after all taxes

Frequently Asked Questions

How much do I take home on £900 per day as a limited company?

At £900 per day (£198,000 annual gross over 220 working days), a limited company director outside IR35 takes home approximately £116,852 in 2026/27. This assumes a £12,570 salary with remaining profits extracted as dividends, giving an effective tax rate of around 41.0%.

What is the difference between PAYE and a limited company at £900 per day?

On £900/day, PAYE takes home £116,098 versus £110,530 for a limited company (outside IR35) — a difference of £5,568 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 £900 per day?

Yes, significantly. Inside IR35 at £900/day, you take home approximately £98,193 — around £12,337 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 £900 per day?

£900 a day is typically commanded by top-tier architects, specialists, and interim leaders, such as enterprise / security architect, interim head of engineering, senior AI / ML specialist and transformation director. It is most common in AI and machine learning, enterprise security, financial services leadership and major change programmes. £900 a day approaches the top of the open contract market. AI specialists, security architects, and interim engineering leaders command it. Demand for hands-on AI implementation experience — production LLMs, RAG systems, governance — has been the single biggest driver pushing contractors into this tier in 2026.