£40 an hour take-home pay, 2026/27

£40 an hour is £320 for an 8-hour day, or £73,600 over 1,840 hours a year. That leaves about £4,341 a month outside IR35 and £3,991 a month inside IR35.

Adjust for my hours

What £40 an hour comes to

Inside IR35 (umbrella)Outside IR35 (Ltd company)
Take-home per year£47,893£52,090
Per month£3,991£4,341
Per week£921£1,002
Per hour worked£26.03£28.31
Share of gross kept65.1%70.8%

Assumes 8 hours a day, 5 days a week for 46 weeks, no pension, umbrella margin not deducted, and for the Ltd company a £12,570 salary plus dividends with £2,000 of expenses.

Your details

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£
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AssumptionsOutside IR35: Optimal Ltd Co structure, salary set to personal allowance (£12,570). All remaining profit taken as dividends.
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Outside IR35 saves you £4,197/yearThat's £350 more per month in your pocket
Inside IR35 (umbrella)
£47,893
£3,991 per month
Tax burden: 34.9%
Gross income£73,600
Employer NI & levy−£9,228
Income tax−£13,181
Employee NI−£3,298
Take home£47,893
Outside IR35 (Ltd Co)· keeps more
£52,090
£4,341 per month
Tax burden: 29.2%
Gross revenue£73,600
Employer NI−£1,136
Expenses−£2,000
Corporation tax−£11,137
Dividend tax−£7,237
Take home£52,090
Annual gross
£73,600
Daily rate
£320
Working days/yr
230
IR35 contract reviewOutside IR35 is worth £4,197 more a year. Would your contract hold up if HMRC checked?Know your status before you sign. A professional review typically costs £99–£150 and gives you a defensible position with HMRC.Review my contract →
Estimates only. Inside IR35 assumes an umbrella company deducts employer NI and the apprenticeship levy, before its own margin. Outside assumes a £12,570 Ltd Co salary. Individual circumstances vary — consult a contractor accountant for personalised advice.

Other hourly rates