£600 per Day Outside IR35
Take-Home Pay '26-'27
Running a Limited Company outside IR35 is the most tax-efficient way to contract in the UK. Use our interactive analyzer to see your net pocket from a £600 daily rate.
Company Director Analysis (Outside IR35)
Running a Limited Company allows for tax-efficient salary/dividend mixes.
Monthly Pocket
£6,930
Tax Efficiency
60.3%
Comparison Matrix: £600 Rate
?How £600/day outside IR35 works
When you are "Outside IR35", your services are provided through a Limited Company (the Contractor). Your business bills the agency £600/day. Your profit is then split between Corporation Tax, Salary, and Dividends.
The Efficiency
- 1.No Employer NI: Unlike inside IR35, the employer NI (13.8%) isn't deducted from your day rate.
- 2.Corp Tax Relief: Expenses like your laptop, travel, and training are deductible from profit.
- 3.Lower Tax Rates: Dividend tax rates (8.75% basic) are lower than PAYE income tax (20% basic).
Pro Tip: Director Salary
Usually, it's efficient to pay yourself a salary up to the NI threshold (£12,570 for 2026/27) and take the rest as dividends.
Detailed Contractor Calc →Outside IR35 FAQs
What is the take-home on £600/day?
Typically approx. £6,800 to £7,200 per month net after all company and personal taxes.
Does the £100k trap apply?
Yes, but you can control it. You can choose to leave profit in your company and build up cash, rather than taking dividends that push you over £100k personally.
Is £600/day a good rate?
It is an excellent rate. Annual turnover on 230 days is £138,000, which offers significant wealth-building potential.
What is the 25% Corp Tax about?
Companies with profits over £250,000 pay 25%. For small contractors, the rate is often effectively 19% or 26.5% on the tapered portion.
A Financial Reference You Can Trust
Updated for the 2026/2027 tax year.
How Our Calculations Are Made
Our calculator uses the official PAYE (Pay As You Earn) algorithms provided by HMRC. We simultaneously process your Income Tax bands, National Insurance thresholds, and Student Loan repayment schedules to provide a precise take-home figure.
Calculated by applying the personal allowance and progressive tax bands (20%, 40%, 45%).
Processed using Class 1 Primary thresholds and rates for the current tax year.
Official Data Sources
We source our tax rates and rules directly from official UK government portals to ensure 100% compliance with latest budget announcements.
Accuracy Disclaimer
This tool provides a highly accurate estimate of your take-home pay. However, final figures on your official payslip may vary depending on:
- • Mid-month tax code changes from HMRC.
- • Specific workplace benefit schemes (e.g. Cycle2Work).
- • Emergency tax codes used by new employers.
- • Arrears or back-pay adjustments.
Meet the Makers
Sameer, Co-Founder
Lead Developer
I built this tool because I believe UK taxpayers deserve absolute clarity. My mission is to provide you with the most precise, ad-free financial calculators available.
Standard Verification Cases
Matches typical 1257L payslip to 99.8% accuracy.
Accurately handles higher-rate tax and NI thresholds.
Verified logic for Personal Allowance tapering.