UK Contractor Day Rates by Skill

What a contract day rate is worth as a salary

The quick conversion contractors use is day rate multiplied by 220 billable days, which allows for holiday, bank holidays and a short gap between contracts. It is gross of tax and of the costs a permanent salary covers for you, such as pension, sick pay and holiday, so treat it as a comparison rather than a take home figure.

The last column is the rate an inside IR35 contract has to pay to leave you level with an outside IR35 one, on 2026/27 tax rates, once employer National Insurance, the apprenticeship levy and a £25 a week umbrella margin have come out of it. It is lower than the 20 to 25 per cent uplift older guides quote, because corporation tax, employer National Insurance and dividend tax have all risen since that rule of thumb was written. Your own figure moves with your pension and expenses: run it through the IR35 calculator.