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2025/26 Tax Year

£250 Day Rate Take Home Pay

Calculate your exact take-home pay on a £250/day contractor rate inside IR35 or through an umbrella company.

£38,026
Annual Take-Home
£3,169
Monthly Take-Home
£165
Effective Day Rate
66%
Retention Rate

£250/Day by Working Pattern

PatternContract ValueAnnual Take-HomeMonthlyRetention
3 days/week£34,500£24,127£2,01170%
4 days/week£46,000£31,076£2,59068%
5 days/week£57,500£38,026£3,16966%
5 days (48 weeks)£60,000£39,506£3,29266%

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

£36,300
Annual Take-Home
£3,025
Monthly Take-Home
£158
Effective Day Rate
63.1%
Retention Rate

Full Breakdown (2025/26)

Annual Contract Value£57,500

£250/day × 5 days × 46 weeks

Umbrella & Employer Costs

Umbrella Margin-£1,150
Apprenticeship Levy (0.5%)-£282
Employer NI (15.0%)-£6,661
Employer Pension (3%)-£1,482
Holiday Pay Accrual (12.07%)+£6,767
Gross Salary (for PAYE)£47,925

Your Deductions (PAYE)

Income Tax-£6,592
Employee NI-£2,637
Employee Pension (5%)-£2,396
Annual Take-Home Pay£36,300
Monthly Take-Home£3,025

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 £250 day rate?

On a £250/day rate working 5 days a week for 46 weeks (inside IR35 or umbrella), your approximate take-home pay is £38,026 per year, or £3,169 per month. Your effective day rate after all deductions is approximately £165.

How much tax do I pay on £250 day rate?

On a £250/day rate (5 days, 46 weeks), you would pay approximately £7,071 in income tax and £2,828 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 £250 day rate inside IR35?

On a £250/day rate inside IR35, you typically retain around 66% of your contract value as take-home pay. This accounts for umbrella margin, employer NI (15%), employer pension (3%), income tax, and employee NI.