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2025/26 Tax Year

£1000 Day Rate Take Home Pay

Calculate your exact take-home pay on a £1000/day contractor rate inside IR35 or through an umbrella company.

£113,916
Annual Take-Home
£9,493
Monthly Take-Home
£495
Effective Day Rate
50%
Retention Rate

£1000/Day by Working Pattern

PatternContract ValueAnnual Take-HomeMonthlyRetention
3 days/week£138,000£74,442£6,20354%
4 days/week£184,000£93,455£7,78851%
5 days/week£230,000£113,916£9,49350%
5 days (48 weeks)£240,000£118,342£9,86249%

Based on standard umbrella arrangement: £25/week margin, 3% employer pension, 0.5% apprenticeship levy, no student loan.

Customise Your Calculation

Contract Details

Enter your IR35/umbrella contract details

£/day

46 weeks = 6 weeks holiday/gap

£

Typically £20-£35 per week

£108,810
Annual Take-Home
£9,067
Monthly Take-Home
£473
Effective Day Rate
47.3%
Retention Rate

Full Breakdown (2025/26)

Annual Contract Value£230,000

£1000/day × 5 days × 46 weeks

Umbrella & Employer Costs

Umbrella Margin-£1,150
Apprenticeship Levy (0.5%)-£1,144
Employer NI (15.0%)-£29,049
Employer Pension (3%)-£5,960
Holiday Pay Accrual (12.07%)+£27,484
Gross Salary (for PAYE)£192,697

Your Deductions (PAYE)

Income Tax-£68,581
Employee NI-£5,672
Employee Pension (5%)-£9,635
Annual Take-Home Pay£108,810
Monthly Take-Home£9,067

Understanding IR35 & Umbrella Companies

  • Inside IR35: You're treated as an employee for tax purposes
  • Employer NI: Comes out of your contract rate, not paid on top
  • Holiday Pay: Accrued at 12.07% (5.6 weeks ÷ 46.4 working weeks)
  • Umbrella Margin: Typically £20-35/week for admin and payroll
  • Apprenticeship Levy: 0.5% for umbrellas with pay bill over £3m

Frequently Asked Questions

What is the take home pay on a £1000 day rate?

On a £1000/day rate working 5 days a week for 46 weeks (inside IR35 or umbrella), your approximate take-home pay is £113,916 per year, or £9,493 per month. Your effective day rate after all deductions is approximately £495.

How much tax do I pay on £1000 day rate?

On a £1000/day rate (5 days, 46 weeks), you would pay approximately £72,917 in income tax and £5,865 in National Insurance. Additional deductions include employer NI, umbrella margin, and pension contributions which come out of your contract rate.

What percentage do I keep on a £1000 day rate inside IR35?

On a £1000/day rate inside IR35, you typically retain around 50% of your contract value as take-home pay. This accounts for umbrella margin, employer NI (15%), employer pension (3%), income tax, and employee NI.